The Indian rupee snapped a six-day-long run of ​gains on Monday, as ​the dollar hovered near a one-year peak against a ​basket of peers even as a retreat in oil prices soothed worries over spillovers from the U.S.-Iran war.The currency ended the trading session at 94.6775 per dollar, down 0.4% ‌from its ⁠close ⁠on Friday. The rupee had risen about 1% in the preceding six sessions.Asian currencies declined ​between 0.3% and 0.7%. A hawkish turn by the U.S. Federal Reserve last week ​has prompted traders to add to wagers on a rate hike later this year, keeping the dollar index clinging to its highest levels - near ​the 101 handle - since May 2025.Futures implied ⁠tightening of ‌around 38 basis points by the year-end. Yields on ​2-year notes ​rose as much as 4 basis points to the highest ⁠since early 2025 at 4.23%."Markets may try to use ​the next data or Fedspeak catalyst to price ​in 50bp of Fed tightening in 2026, but unless there is a fresh Middle East escalation, lower oil prices should contain USD gains," analysts at ING said in a note.Brent crude oil prices declined nearly 2% after U.S. and Iranian officials made "encouraging progress" at a first round ‌of talks in Switzerland.While the rupee's persistent bearish bias has eased in light of the retreat in oil prices and ​policy measures ​to draw dollar inflows, ⁠traders reckoned that the prospect of higher borrowing costs in the U.S. could dampen the improved sentiment.Dollar-rupee far forward premiums, which reflect the cost of ​hedging against rupee depreciation, rose on Monday with the 1-year forward implied yield up 10 bps at 2.95%.Bankers also expect that hedging of interest obligations on foreign currency deposits, raised under aforementioned measures to draw dollar flows, would likely steepen the forward curve.