Within the interbank overseas trade market, the rupee opened at 95.43 towards the US greenback, hit an intraday low of 95.80 and at last closed at 95.67 (provisional). file. |Photograph supplied by: Reuters
The rupee depreciated by 31 paise towards the US greenback to shut at 95.67 (provisional) on Wednesday (June 3, 2026) after the US Commerce Consultant proposed a further 12.5% tariff on imports from India as a result of labor regulation violations. Foreign exchange merchants stated robust greenback demand, hovering oil costs, geopolitical tensions and relentless overseas capital outflows additional weakened investor sentiment.
Within the interbank overseas trade market, the rupee opened at 95.43 rupees towards the US greenback, touched an intraday low of 95.80 rupees, and at last closed at 95.67 rupees (provisional), down 31 paise from the earlier shut. On Tuesday (June 2, 2026), the rupee depreciated by 17 paise to shut at Rs 95.36 towards the US greenback.
Foreign exchange merchants stated renewed hostilities between the US and Iran and the US Commerce Consultant’s actions amid the stalled negotiations weighed on investor sentiment. The Workplace of the U.S. Commerce Consultant has proposed imposing further tariffs of 12.5% on 54 international locations, together with India, for failing to ban imports of merchandise produced with compelled labor.
In the meantime, the federal government stated India is cooperating with the US in an investigation below Part 301 over considerations associated to compelled labor and extra industrial capability. The nation can be working “in parallel” with the USA to finalize an interim commerce settlement, the framework of which was introduced via a joint assertion on February 7.
On March 11 and 12, 2026, the Workplace of the USA Commerce Consultant (USTR) launched two separate Part 301 investigations concentrating on 60 international locations over considerations associated to compelled labor and extra industrial capability. In the meantime, market members are actually specializing in the Reserve Financial institution of India Financial Coverage Committee’s (RBI MPC) rate of interest determination on June 5, with all eyes on inflation, development and the rupee.
The RBI Financial Coverage Committee is scheduled from June 3 to five. The six-member MPC, headed by central financial institution governor Sanjay Malhotra, is predicted to announce its determination on June 5.
In the meantime, the greenback index, which measures the greenback’s power towards a basket of six currencies, rose 0.13% to commerce at 99.34. Brent crude, the world oil benchmark, was buying and selling 2.76% larger at $98.65 per barrel in futures buying and selling.
Within the home inventory market, the Sensex fell 303.67 factors to settle at 74,346.17 and the Nifty fell 77.95 factors to 23,405.60. Overseas institutional buyers offered shares value Rs 8,362.92 crore on a internet foundation on Tuesday (June 2, 2026), in line with trade knowledge.
