Rupee gains for fourth session, hits nearly 3-week high amid RBI support

Domestic currency settles at 95.65 per dollar as RBI intervention, equity gains and short-covering offset pressure from higher crude oil prices

The rupee appreciated for a fourth consecutive session on Wednesday, settling at its strongest level in almost three weeks, tracking the gains in domestic equities, and continued intervention by the Reserve Bank of India (RBI), dealers said.

 

Short-covering ahead of the US Federal Reserve's policy decision later in the day further aided the local currency.

 

The domestic currency settled at 95.65 per dollar, against the previous close of 95.86 per dollar. During the day, it strengthened beyond 95.50 per dollar mark to touch 95.49 per dollar. State-owned banks sold dollars during the day, likely on behalf of the RBI.

 

 

“The rupee was held by RBI intervention despite crude and dollar inching up,” said a dealer at a state-owned bank.

 

The Indian unit fell 1.03 per cent in July so far. In 2026, the currency depreciated 6.03 per cent. 

 

Brent crude oil price climbed more than 3.5 per cent to around $87 a barrel following escalating tensions in the Middle East, although oil prices have swung sharply over the past few sessions on conflicting reports surrounding the conflict.

 

Market participants are now awaiting the outcome of the Federal Reserve's policy meeting. While the US central bank is widely expected to keep interest rates unchanged, markets are pricing in around a 30 per cent probability of a 25-basis-point rate hike. The domestic rate setting panel of the Reserve Bank of India will meet next week to review the monetary policy.

 

“The currency was supported by continued dollar sales from state-owned and foreign banks with market participants also attributing support to RBI intervention. However, gains were capped by dollar demand linked to the expiry of about $2.7 billion of exchange-traded futures contracts, a rebound in Brent crude oil prices, and caution ahead of the US Federal Reserve's policy decision,” said  Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.

 

In June, the Indian central bank announced measure to attract foreign capital, including a concessional swap scheme for FCNR (B) deposits. The scheme, which is effective till Sep 30, helped banks to mobilise over $32 billion.