The Indian rupee weakened against the US dollar in early trade on Monday, driven by a rise in crude oil prices and a stronger American currency overseas due to heightened geopolitical tensions in the Middle East after US President Donald Trump announced plans to blockade the Strait of Hormuz following the failure of US-Iran negotiations over the weekend in Islamabad, Pakistan. Moreover, heavy selling pressure in domestic equity markets weighed on rupee sentiments. However, some falls were limited by Foreign Institutional Investor (FII) buying and a resilient economic outlook from the Asian Development Bank (ADB). Foreign Institutional Investors (FIIs) became net buyers, purchasing equities worth Rs 672.09 crore on Friday. In its Asian Development Outlook April 2026 report, the ADB projected India's GDP growth to remain robust at 6.9% in the current fiscal and rise to 7.3% in the next fiscal, driven by strong domestic demand, and supported by easing financing conditions and lower US tariffs on Indian goods. Moreover, the Reserve Bank of India (RBI) reported that India’s foreign exchange reserves rose by $9.063 billion to $697.121 billion for the week ended April 3, 2026. 

The partially convertible currency is currently trading at 93.35, weaker by 52 paise from its previous close of 92.83 on Friday. The currency touched a high and low of 93.4050 and 93.25 respectively.