Rupee rises after RBI support and FPI inflows, after prior record lows amid US-Iran tensions

The Indian Rupee started the week on a weaker note against the US dollar, influenced by rising global crude oil prices and a strengthening dollar. However, inflows from foreign institutional investors and robust forex reserves offered some respite. Recently, India's foreign exchange reserves experienced a notable rise, prompting market watchers to closely track currency fluctuations and international trends.

On Friday, the Indian rupee experienced a decrease of six paise against the US dollar. Factors such as a robust dollar, escalating US Treasury yields, and elevated dollar demand from importers contributed to this decline. Additionally, rising global oil prices, combined with geopolitical tensions, are projected to impact the rupee further. The domestic market mirrored this trend, as foreign investors recorded net sales.

Rupee falls as geopolitical risks outweigh support from lower crude oil prices

The currency opened 0.5% stronger at 94.92 against the US dollar, its highest level since July 1. It later gave up nearly half of its early advance to settle at 95.1175 per dollar, its strongest closing level since July 7.

Mumbai, Aug 5: The rupee gained 13 paise to settle at 95.15 (provisional) against the US dollar on Wednesday, after the Reserve Bank of India kept the key policy rate unchanged for the third time in a row in FY27 amid the West Asia crisis.Forex traders said investor sentiments were supported by an overnight decline in crude oil prices and a weakness of the American currency in the overseas market.Moreover, a decline in US treasury yields also supported the rupee.Rupee movement and market trendsAt the interbank foreign exchange, the rupee opened at 94.90 against the greenback and traded in a tight range of 94.89-95.25 during the session. It eventually settled at 95.15, higher by 13 paise from its previous close.On Tuesday, the rupee appreciated 9 paise to close at 95.28 against the American currency."We expect the rupee to trade with a slight positive bias on improved global risk sentiments amid de-escalation of tensions between the US and Iran. The US said that a deal with Iran could be reached soon. Traders may take cues from ISM services PMI data from the US. USD-INR spot price is expected to trade in a range of 94.80 to 95.50," said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.Akasa Air CEO Defends 152 Reported Technical Defects, Says Figures Reflect Strong Safety CultureRBI keeps policy rate unchangedThe six-member Monetary Policy Committee, headed by Governor Sanjay Malhotra, unanimously voted to keep the repo rate unchanged at 5.25 per cent and retained its "neutral" policy stance.The RBI relied on measures announced at its previous policy meeting to attract capital inflows and support the rupee.Speaking to reporters at the customary briefing after the monetary policy review, Malhotra said the rupee has not appreciated as intended despite the high flows from foreign shores.He further noted that the strengthening in the rupee is possible if geopolitical tensions de-escalate. It will be the RBI's endeavour that the trajectory for the rupee remains orderly, he added.Also Watch:Global cues and equitiesMeanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.82, down 0.03 per cent.Brent crude, the global oil benchmark, was trading higher by 1.75 per cent at USD 80.75 per barrel in futures trade, but was down sharply from above USD 100 per barrel levels seen in July.On the domestic equity market front, Sensex climbed 152.05 points to settle at 78,581, while the Nifty closed marginally up by 9.75 points to 24,624.65.Foreign institutional investors purchased equities worth Rs 2,446.47 crore on a net basis on Tuesday, according to exchange data.(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/

Mumbai, Aug 3: The rupee strengthened against the US currency for the sixth consecutive session on Monday, closing higher by 12 paise at 95.31 (provisional) following a sharp drop in global crude oil prices and a softer greenback after US President Donald Trump decided to hold off strikes against Iran.FII inflows and gains in domestic stock markets provided further support to the local unit, forex traders said.Rupee extends winning streakAt the interbank foreign exchange, the rupee opened at 95.15 against the greenback and traded in a tight range of 95.11-95.34 during the day. It eventually settled at 95.31 (provisional), up 12 paise from its previous close.The rupee has rebounded by more than 3 per cent in the six trading sessions to Monday, aided by FII inflows and easing of tensions in the West Asia region. The unit had closed higher by 7 paise at 95.43 against the US dollar on Friday.US President Donald Trump on Sunday said he decided to hold off on ordering American forces to carry out new strikes against Iran at the urging of Gulf allies Qatar, Saudi Arabia, and the United Arab Emirates.The president added that a plan was in place for the US forces to carry out "the biggest attack since World War II" on Sunday. However, he decided to scrap the plan and give diplomacy more time to play out after hearing from key Gulf leaders — including Saudi Crown Prince Mohammed bin Salman — as well as at the request of unnamed Iranian officials.Also Watch:Analysts see positive bias"The rupee gained as US President Donald Trump cancelled his plan to attack Iran over the weekend. He also said the US and Iran are due to negotiate Monday evening. This boosted global risk sentiments. A sharp fall in crude oil prices, too, supported the rupee," Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said."We expect the rupee to trade with a slight positive bias on a rise in risk appetite in global markets... Any renewed geopolitical tensions between the US and Iran may cap sharp upside. USD-INR spot price is expected to trade in the range of Rs 94.90 to Rs 95.50," he said.The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07 per cent lower at 99.84.Brent crude futures, the global oil benchmark, were trading 5.06 per cent lower at USD 83.48 per barrel.Duleep Trophy 2026: Kanhaiya Wadhawan Named North Zone Captain, Ayush Badoni Vice-CaptainMarkets and economic dataOn the domestic equity market front, the Sensex rose 544.39 points, or 0.70 per cent, to close at 78,639.03, while the Nifty was up 390.70 points, or 1.60 per cent, to settle at 24,774.30.Foreign Institutional Investors purchased equities worth Rs 277.48 crore on a net basis on Friday, according to exchange data.The RBI data released on Friday showed that the country's forex reserves jumped USD 6.118 billion to USD 682.354 billion during the week ended July 24. In the previous reporting week, the overall reserves had increased by USD 1.08 billion to USD 676.237 billion.The central government's fiscal deficit stood at 18.2 per cent of the full-year target at the end of June, according to data released by the Controller General of Accounts on Friday.(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/