Indian Rupee Hits 4-week Low

The Indian rupee hovered around 96.3 per dollar, remaining under pressure after reaching an eight-week low, as escalating US-Iran tensions fueled a surge in crude oil prices and weakened sentiment. Brent climbed above $85 per barrel after renewed US strikes on Iran and attacks near the country's main oil export terminal heightened concerns over supply disruptions. Meanwhile, the RBI continued intervening in the spot and non-deliverable forward markets to support the currency, though traders said intervention remained relatively measured. The rupee remained under pressure despite a turnaround in foreign portfolio flows, with overseas investors buying about $1.5 billion in Indian equities and $500 million in debt this month, as persistent importer demand for dollars and capital outflows weighed on the currency. However, a softer-than-expected US inflation report, which reduced expectations of imminent Federal Reserve rate hikes and weakened the dollar, helped limit further losses.

The Indian Rupee touched 95.97 against the USD, the lowest since June 2026. Over the past 4 weeks, US Dollar Indian Rupee gained 1.53%, and in the last 12 months, it increased 11.61%.

The Indian rupee hovered around 96.1 per dollar, steadying after reaching seven-week lows as softer-than-expected US inflation eased expectations of a near-term Federal Reserve rate hike. Asian currencies found support as US consumer prices increased less than anticipated in June, prompting markets to scale back expectations for a 25-basis-point rate increase at both the July and September Fed meetings. The weaker dollar helped cushion the rupee, although gains remained limited by Brent crude holding near $86 per barrel, well above the roughly $70 level seen two weeks ago, as the United States stepped up strikes on Iranian targets and Iran retaliated with attacks on US positions and commercial vessels linked to the Strait of Hormuz, raising concerns over global energy supplies. Despite intervention by the Reserve Bank of India in both the spot and non-deliverable forward markets, the currency remained under pressure as elevated oil prices continued to weigh on sentiment.