INR vs USD Rate, June 5, 2026: Rupee Rises 11 Paise To 95.63 Against US Dollar Ahead of RBI Policy Decision

Mumbai, Jun 5: The rupee appreciated 11 paise to 95.63 against the US dollar in early trade on Friday, as market participants wait for the RBI policy decision, while there has also been encouraging news from the India-US trade discussions. 

Forex traders said the 96.00 zone remains a strong resistance area for USDINR and if the RBI signals a cautious approach toward inflation and currency stability in its policy decision, the rupee could gradually move back towards the 95.00-95.20 region in the near term. 

At the interbank foreign exchange market, the rupee opened at 95.72, then touched 95.63 in initial trade, registering a rise of 11 paise from its previous close. 

On Thursday, the rupee rose 2 paise to settle at 95.74 against the US dollar. 

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.41, higher by 0.01 per cent. 

Brent crude, the global oil benchmark, was trading up 0.40 per cent at USD 95.41 per barrel in futures trade. 

Market participants are now turning their attention to the Reserve Bank of India’s MPC rate decision on June 5, as inflation, growth and the rupee are under focus, traders said. 

“A more cautious RBI stance on inflation would further support debt inflows into India, providing an additional cushion for the rupee,” CR Forex Advisors MD Amit Pabari said. 

While markets wait for the RBI, there has also been encouraging news from the India-US trade discussions, Pabari said, adding that with negotiations entering their final day, investors are hopeful that progress on trade could improve sentiment and support future capital inflows into India. 

On the domestic equity market front, Sensex climbed 269.93 points to 74,629.94 in opening trade, while the Nifty was up 62.4 points to 23,478.95. 

Foreign institutional investors offloaded equities worth Rs 4,447.06 crore on a net basis on Thursday, according to exchange data. 

Meanwhile, US President Donald Trump has said that Prime Minister Narendra Modi is a good friend and expressed confidence that the United States and India would reach a trade agreement. 

“We will get to a deal because I like your Prime Minister a lot. He is a good friend of mine. We get along great, and we are gonna make a deal,” Trump told reporters at the Oval Office on Thursday. 

Moreover, the US said its strategic partnership with India remains robust and that President Donald Trump’s invitation to Prime Minister Narendra Modi to visit Washington is a “testament” to the “great relationship” between the two leaders as well as the growing ties between the two countries.