Rupee Rebounds From All-Time Low as Iran Talks Progress

The Indian rupee experienced a notable recovery in early trade on Thursday, May 21, 2026, gaining 41 paise against the U.S. dollar. It settled at 96.45 per dollar, according to The Hindu. This upward movement was observed after U.S. President Donald Trump indicated that negotiations with Iran were entering their final stages. The rupee's recovery comes after it had reached an all-time closing low of 96.86 against the U.S. dollar on Wednesday, May 20, 2026. On that same day, the currency had also touched a new lifetime low of 96.95 during intraday trading, with strong demand for dollars contributing to its depreciation. Forex traders, as reported by The Hindu, highlighted that investors remain cautious, continuously assessing geopolitical risks and oil price sensitivity. Concerns persist regarding potential flare-ups in West Asia tensions or significant spikes in crude oil prices, which could impact the currency's stability. In the interbank foreign exchange market, the rupee commenced trading at 96.25 against the U.S. dollar before strengthening to 96.45 in the initial hours of trade, marking a significant rebound from its previous record lows.