Indian rupee weakened against the U.S. dollar on Monday amid heightened tensions in West Asia after ceasefire talks between US and Iran failed to reach an agreement over the weekend in Islamabad. Further, spike in energy prices have reignited fears of inflation and interest-rate concerns. The Brent crude oil prices have surged to trade near $102 a barrel after US President Donald Trump said the US Navy would swiftly begin a blockade of ships entering or leaving the Strait of Hormuz. Meanwhile, the retail inflation based on Consumer Price Index (CPI) rose to 3.40% (Provisional) in the month of March 2026 as compared to 3.21% in February 2026 on higher food prices. This represents the second consecutive month of an increase in inflation. On the global front, the euro has weakened against the dollar on Monday, to trade below $1.17, as hopes of peace deal between US and Iran dimmed.

Finally, the rupee ended at 93.35 (Provisional), weakened by 52 paise from its previous close of 92.83 on Friday. The currency touched a high and low of 93.41 and 93.25 respectively.