Rupee

The rupee rose marginally by 1 paisa to 95.73 on Wednesday, assisted by RBI intervention, as heightened tensions in West Asia kept global markets on the edge. A rise in global crude oil prices added pressure to the local unit while a decline in the dollar index and FII inflows provided support, forex traders said. At the interbank foreign exchange, the rupee opened at 95.72 before slipping to 95.73, up 1 paisa from its previous close. The rupee depreciated 13 paise to close at 95.74 against the US dollar on Tuesday. "The rupee was very range-bound yesterday (Tuesday). With oil prices above USD 91, there were bids from oil companies... the key point is that the rupee is showing reasonable resilience despite the oil shock, largely because of suspected continued RBI intervention," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. US President Donald Trump said on Tuesday that the US has no talks planned with Iran but insisted the Strait

Global factors weigh on the currency despite sizeable FCNR(B) inflows, as economists flag tight financial conditions, volatile energy markets and competition for capital

The impact could be significant because nearly 65% of the cost of a semiconductor project is spent on machinery, most of which has to be imported and paid for in dollars

The rupee depreciated 7 paise to 95.68 against the US dollar in early trade on Tuesday, weighed down by elevated crude oil prices and persistent demand for greenback. Forex traders said Brent crude near USD 91 per barrel increased oil-related dollar demand and the Reserve Bank's earlier-than-expected closure of the concessional FCN (B) forex-swap facility raised concerns over future dollar inflows. At the interbank foreign exchange, the rupee opened at 95.68, down 7 paise from its previous close. On Monday, the rupee depreciated 19 paise to close at 95.61 against the US dollar. The rupee opened lower as oil prices rose with the US and Iran remaining at odds over the Strait of Hormuz and there was no progress on a peace deal, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.63, down 0.01 per cent. Brent crude, the

The estimates are being reworked after the central bank Friday decided to end a program attracting dollars from overseas Indians a month earlier than planned, having garnered more than $50 billion

The rupee settled at 95.61 per dollar, while the benchmark 10-year government bond yield rose to 6.81 per cent as the RBI's move raised concerns over dollar inflows

The Indian rupee is expected to weaken further against the US dollar over the next two fiscal years, pressured by elevated energy prices, global risk aversion and less favourable interest-rate differentials, while government measures to attract foreign capital should help contain the pace of depreciation, BMI, a Fitch Solutions Company, said. BMI expects the rupee to weaken to Rs 97 per US dollar by the end of FY2026-27, which runs from April 2026 to March 2027, and to Rs 99 per dollar by the end of FY2027-28, from Rs 95.4 currently. The currency has already weakened by about 4 per cent since the start of the US-Iran conflict, with higher energy prices and a broader risk-off environment weighing on the rupee, the research firm said in a note. India's heavy dependence on imported energy is likely to remain a key source of pressure. The country imports about 90 per cent of its oil requirements, meaning sustained increases in Brent crude prices would raise the import bill and increase

Despite volatile crude oil prices ​due to war in the West Asia and persistent dollar demand from hedging flows, the rupee has ‌demonstrated remarkably muted price action since last week

The rupee depreciated 17 paise to 95.59 against the US dollar in early trade on Monday, as the overall risk-reward appears tilted towards weakness. Forex traders said investors' sentiment turned cautious after the Reserve Bank of India on August 14 said that its swap facility for FCNR (B) deposits will be available only for deposits mobilised till August 31. Earlier, the cut-off date for Foreign Currency Non-Resident (Bank) or FCNR (B) deposits was September 30. Under the FCNR (B) scheme, banks offer attractive interest rates to mobilise foreign currency deposits. The Reserve Bank on Friday said its concessional swap facility, introduced to encourage foreign currency inflows, has attracted USD 56.84 billion till August 13. At the interbank foreign exchange, the rupee opened at 95.50, then fell to 95.59, down 17 paise from its previous close. On Friday, the rupee appreciated 3 paise to close at 95.42 against the US dollar. "After attracting nearly USD 50 billion of forex inflows,

The rupee gained 2 paise to 95.43 against the US dollar in early trade on Friday, backed by a weaker greenback overseas. The Indian currency, however, remained under pressure due to the withdrawal of foreign funds from domestic equities and rising crude oil prices amid geopolitical uncertainties, forex traders said. At the interbank foreign exchange market, the rupee opened at 95.39 and later slipped to trade at 95.43 against the American currency in early deals, up marginally by 2 paise from its previous closing level. On Thursday, the rupee closed 12 paise lower at 95.45 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.08 per cent lower at 99.78. Brent crude, the global oil benchmark, was trading higher by 0.16 per cent at USD 87.21 per barrel in futures trade. According to analysts, the dollar index retreated following a fall in US Treasury yields and inflation in the world's largest ec

The rupee depreciated 7 paise to 95.40 against the US dollar in early trade on Thursday pressured by elevated crude oil prices and lingering geopolitical risks. Forex traders said investor sentiment remains fragile as the standoff between US and Iran does not seem to be coming to an end with Iran warning of keeping the Strait of Hormuz closed till 2029 while the US President saying that the Hormuz is in US's command. At the interbank foreign exchange market, the rupee opened at 95.40, registering a fall of 7 paise from its previous close. On Wednesday, the rupee closed at 95.33 against the American currency. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 100.01. Brent crude, the global oil benchmark, was trading lower by 1.22 per cent at USD 87.89 per barrel in futures trade. With oil prices near to USD 88 a barrel but the dollar index higher at 100.01, the rupee opened at 95.40 on Thursday, after rising to 9

The rupee fell 6 paise to 95.42 against the US dollar in early trade on Wednesday, weighed down by the sharp rise in Brent crude toward USD 90/bbl, as hopes of a quick US-Iran agreement and reopening of the Strait of Hormuz faded. Forex traders said the principal driver behind the rise in Brent crude prices is the uncertainty over the Strait of Hormuz. Markets are increasingly sceptical about a quick US-Iran agreement, while reports of attacks on shipping have renewed concerns about physical supply, they said. At the interbank foreign exchange, the rupee opened at 95.40 before slipping further to 95.42, down 6 paise from its previous close. On Tuesday, the rupee declined 6 paise to settle at 95.36 against the US dollar. With Brent now near USD 90 per barrel, INR/USD at 95.50 becomes the immediate level to watch, followed by 95.8096.00 if oil remains elevated, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. Brent crude, the global o

The rupee fell 8 paise to 95.38 against the US dollar in early trade on Tuesday amid no breakthrough in the ongoing West Asia crisis, which kept global markets on edge and pushed up crude oil prices overnight. A decline in domestic equity markets in early trade maintained pressure on the local unit while FII inflows and intervention by the Reserve Bank of India (RBI) provided support, preventing a further slide, forex traders said. At the interbank foreign exchange market, the rupee opened at 95.38 against the US dollar and maintained that level till the time of publishing the copy. The rupee declined 13 paise to settle at 95.30 against the US dollar on Monday. "The rupee traded in a relatively narrow range (on Monday) despite Brent rising towards USD 84. The downside was contained by RBI intervention, with state-run banks reportedly selling dollars on the central bank's behalf," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. "Tod

The rupee fell 8 paise to 95.25 against the US dollar in early trade on Monday, weighed down by a stronger greenback and a rise in global crude oil prices. However, FII inflows and a rise in the country's forex reserves capped a sharper fall in the local unit, forex traders said. At the interbank foreign exchange, the rupee opened at 95.18 before slipping further to 95.25, down 8 paise from its previous close. The rupee settled with a 5 paise gain at 95.17 against the US dollar on Friday. "Overall, USD/INR remained range-bound around 95.20-95.30, with the rupee ending the session (on Friday) marginally stronger. Strong forex reserves also provided confidence and limited dollar-demand pressure," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. "Exporters may sell upticks up to 95.40 on Monday while importers are likely to buy dips at 95. Traders will keep a close watch on developments in West Asia as well as the Reserve Bank of India

The rupee traded in a narrow range and depreciated 6 paise to 95.28 against the US dollar in early trade on Friday, tracking a firmer dollar and a rise in US treasury yields. Forex traders said dollar demand from importers and profit-taking after the rupee's recent appreciation appear to have outweighed the favourable global backdrop. At the interbank foreign exchange market, the rupee opened at 95.27, then touched 95.28 against the American currency, registering a fall of 6 paise from its previous close. On Thursday, the rupee depreciated 14 paise to close at 95.22 against the US dollar. "With oil back near USD 83, the dollar firm near 100, and US yields elevated, 95.00-95.10 stands out as a solid support for the rupee, and the currency climbing back towards the 96.00-96.20 zone looks like reality. Global developments, particularly around oil prices and the dollar, are likely to remain the key drivers for the rupee in the near term, keeping the overall bias tilted towards weakness

Cooling crude prices and over $40 billion in recent inflows have eased depreciation concerns, improving the Indian currency's attractiveness for carry trades

The rupee depreciated 9 paise to 95.17 against the US dollar in early trade on Thursday as the support from lower crude oil prices were offset by lingering geopolitical risks. At the interbank foreign exchange market, the rupee opened at 95.13, then touched 95.17 against the American currency, registering a fall of 9 paise from its previous close. On Wednesday, the rupee settled at 95.08 against the American currency. "For now the rupee finds itself caught between encouraging diplomatic headlines and lingering geopolitical risks.. Positive developments around Hormuz could help it revisit the 94.8095.00 zone," said CR Forex Advisors MD Amit Pabari. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 0.05 per cent higher at 99.72. Brent crude, the global oil benchmark, was trading 0.20 per cent lower at USD 79.29 per barrel in futures trade. On the domestic equity market front, Sensex climbed 201.43 points to 78,782.

The rupee strengthened and government bond yields eased on geopolitical relief and lower crude prices before both pared gains after the RBI's policy announcement and Governor Sanjay Malhotra's remarks

Despite markets continuing to price in policy rate hikes over the next 6-12 months, the softer-than-expected tone of the policy has supported bond markets, said Deepak Agrawal, Kotak Mahindra AMC.

Analysts expect the rupee to improve further and may move back towards 90 by the end of this year, supported by several reasons, including a drop in oil prices and FIIs showing positive signs.