Mumbai, Jun 1 (PTI) The rupee depreciated 34 paise to close at 95.19 against the US dollar on Monday, amid renewed geopolitical tensions between the US and Iran and a surge in crude oil prices.

Forex traders said the strength of the American currency in the overseas market and Israel-Lebanon tensions also deteriorated global risk sentiments.

At the interbank foreign exchange market, the rupee opened at 94.93 against the US dollar, then touched an intraday high of 94.73 and a low of 95.03 during the day.

At the end of Monday's trading session, the rupee was quoted at 95.19, down 34 paise from its previous close.

On Friday, the rupee appreciated 73 paise to close at 94.85 against the US dollar on suspected interventions by the RBI.

"We expect the rupee to trade with a slight negative bias on renewed geopolitical tensions and an overnight surge in crude oil prices. A strong dollar and rising US treasury yields may also weigh on the rupee," said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.

Choudhary further noted that any continued peace talks may prevent a sharp fall. "USDINR spot price is expected to trade in a range of 94.60 to 95.30," he added.

Forex traders said attention has now shifted toward the upcoming RBI Monetary Policy Committee meeting scheduled for June 3-5. The six-member Monetary Policy Committee (MPC), headed by RBI Governor Sanjay Malhotra, will announce its decision on June 5.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.04, up 0.10 per cent.

Brent crude, the global oil benchmark, was trading higher by 3.47 per cent at USD 94.28 per barrel in futures trade.

On the domestic equity market front, Sensex dropped 508.40 points to settle at 74,267.34, while the Nifty was down 165.15 points to 23,382.60.

Foreign institutional investors offloaded equities worth Rs 3,911.68 crore on a net basis on Monday, according to exchange data.

According to government data released on Monday, gross GST collections rose 3.2 per cent to over Rs 1.94 lakh crore in May on higher supplies of goods and services, as well as collection from imports.

India's industrial production expanded at a slower pace of 4.9 per cent in April due to tepid growth in the energy sector amid the West Asia crisis, according to official data released on Monday.

The factory output, measured in terms of the Index of Industrial Production (IIP), expanded by 5.7 per cent in April 2025. The growth rate was 3.2 per cent in March 2026.

According to the latest data released by the Controller General of Accounts on Monday, the government has achieved its fiscal deficit target of 4.4 per cent of the GDP for 2025-26. The fiscal deficit for the previous financial year was estimated to be at Rs 15,68,936 crore, which was revised down to Rs 15,58,492 crore.

The government managed to collect Rs 33.42 lakh crore revenue, or 98.8 per cent of the revised Budget Estimates (RE), the CAG data showed.

Meanwhile, US President Donald Trump has said the US and Iran are close to a "very good deal," but if Washington does not get what it wants, then it will “end it in a different way." Trump said the Iranians are "good negotiators," but argued that the United States now holds "all the cards" because Iran has been "militarily defeated." PTI DRR HVA

Rupee depreciation reflects geopolitical tensions, crude price gains and a stronger dollar, with RBI policy now in focus. The rupee weakened against the US dollar amid renewed geopolitical tensions, higher crude oil prices, a stronger dollar, and softer global risk sentiment. Forex traders noted intraday volatility in the interbank foreign exchange market and said the currency was under pressure from external market conditions, while any continued peace talks could limit further downside. Market attention shifted to the upcoming RBI Monetary Policy Committee meeting and the central bank's policy signal.