Rupee reverses gains ahead of Jackson Hole meet; ends lower at 87.27/$

Indian Rupee today: The domestic currency closed 20 higher at 87.27 against the dollar on Thursday, according to Bloomberg

The Indian Rupee gave up early gains on Thursday to end lower ahead of the Jackson Hole event later today, where the Federal Reserve Chair's speech will be closely watched. 

 

The domestic currency closed 20 higher at 87.27 against the dollar on Thursday, according to Bloomberg. The unit has slipped 1.8 per cent in the current financial year and 1.93 per cent in 2025 so far. In August, it gained around 0.5 per cent against the dollar. 

The Rupee was again sold off at higher levels and has not been able to sustain its gain above 87 despite rising till that level for three continues days, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "Today the main buyer was a big public sector bank who probably bought for oil/defence." 

 

 

RBI minutes showed that all six members of the MPC unanimously decided to keep the policy repo rate unchanged at 5.5 per cent while maintaining the "neutral" stance. "Uncertainty in external demand, driven by tariff and geopolitical uncertainty, remains the major drag on growth as it also hinders private investment intentions, which is yet to show visible signs of improvement," said Sanjay Malhotra, governor, RBI, in the minutes. 

 

Meanwhile, in the US, the FOMC minutes showed that the majority of officials saw inflation as a greater risk. Investors, meanwhile, will also brace for Fed Chair Jerome Powell's speech at the August summit in Jackson Hole, Wyoming.

 

The August 27 deadline for implementing the additional 25 per cent US tariffs on Indian goods, if enforced, could weigh further on the rupee.  As the US Treasury Secretary Scott Bessent has been threatening India with more tariffs, probably the current appreciation of the rupee was not sustainable, Bhansali said. 

  The dollar index, a measure of the greenback against a basket of six major currencies, was up 0.01 per cent at 98.22.

 

In commodities, crude oil prices climbed as investors remained focused on the Ukraine peace push, with a bigger-than-expected weekly drop in US crude inventories. Brent crude price was up 0.93 per cent at 67.46 per barrel, while WTI crude prices were higher by 1.00 per cent at 63.34 per barrel, as of 3:40 PM IST.