Rupee Finds Relief as Oil Prices Ease

2026-05-21 04:10 By Mariene Camarillo 1 min. read

The Indian rupee hovered near 96.4 per dollar, pausing losses after briefly crossing the 97-per-dollar mark for the first time.

Softer oil prices offered temporary relief as Brent crude fell more than 5% to near $105 per barrel, while the US 10-year Treasury yield slipped below 4.60%, improving market sentiment.

The rupee had remained under pressure, falling nearly 2.5% over nine sessions amid strong dollar demand, rising US yields, and heavy foreign fund outflows.

Meanwhile, the central bank has already announced a $5 billion dollar-rupee swap auction scheduled for May 26.

The Reserve Bank of India is also reportedly considering measures to stabilize the rupee, including a possible rate hike, additional swap auctions, and schemes to attract foreign currency inflows from non-resident Indians, which officials estimate could bring in up to $50 billion.

Markets are now focused on the RBI’s June 3–5 policy meeting for signals on further support measures.



News Stream
Rupee Finds Relief as Oil Prices Ease
The Indian rupee hovered near 96.4 per dollar, pausing losses after briefly crossing the 97-per-dollar mark for the first time. Softer oil prices offered temporary relief as Brent crude fell more than 5% to near $105 per barrel, while the US 10-year Treasury yield slipped below 4.60%, improving market sentiment. The rupee had remained under pressure, falling nearly 2.5% over nine sessions amid strong dollar demand, rising US yields, and heavy foreign fund outflows. Meanwhile, the central bank has already announced a $5 billion dollar-rupee swap auction scheduled for May 26. The Reserve Bank of India is also reportedly considering measures to stabilize the rupee, including a possible rate hike, additional swap auctions, and schemes to attract foreign currency inflows from non-resident Indians, which officials estimate could bring in up to $50 billion. Markets are now focused on the RBI’s June 3–5 policy meeting for signals on further support measures.
2026-05-21
Indian Rupee Rebounds After RBI Intervention
The Indian rupee climbed back above 97 per USD, attempting to recover from record lows, after the Reserve Bank of India reportedly intervened to support the currency amid pressure from soaring oil prices. According to Bloomberg, the RBI sold small amounts of dollars in the onshore market on Wednesday after the rupee repeatedly hit all-time lows in recent sessions. The central bank faces mounting pressure to stabilize the rupee, which has lost over 7% this year, making it Asia’s worst-performing currency. As a net energy importer, India is grappling with a widening trade deficit and rising fuel subsidy costs due to surging oil prices from the war. Adding to the strain, global investors have pulled a record $23 billion from Indian stocks this year.
2026-05-20
Indian Rupee Hits 8-week Low
The Indian Rupee touched 96.64 against the USD, the lowest since March 2026. Over the past 4 weeks, US Dollar Indian Rupee gained 3.75%, and in the last 12 months, it increased 12.92%.
2026-05-19