Rupee Recovers from 3-Week Low

2026-07-02 03:51 By Mariene Camarillo 1 min. read

The Indian rupee strengthened to around 94.9 per dollar, retreating from three-week lows as another decline in crude oil prices supported sentiment.

Brent crude extended its losses after falling 1% on Wednesday and slipping another 1%, dropping below USD 71 per barrel following signs of progress in indirect US-Iran negotiations and easing concerns over disruptions to oil supplies through the Strait of Hormuz.

Although lower energy prices offered temporary relief by easing concerns over India's import bill, traders remained cautious, citing higher US Treasury yields and a stronger dollar that kept most Asian currencies under pressure.

Earlier this week, the Reserve Bank of India was reportedly seen selling US dollars near the 94.75 level, but the currency continued to weaken after the intervention eased.

Investors also assessed recent US economic data and remarks from Federal Reserve officials, reinforcing the importance of containing inflation, supporting demand for the US dollar.



News Stream
Rupee Recovers from 3-Week Low
The Indian rupee strengthened to around 94.9 per dollar, retreating from three-week lows as another decline in crude oil prices supported sentiment. Brent crude extended its losses after falling 1% on Wednesday and slipping another 1%, dropping below USD 71 per barrel following signs of progress in indirect US-Iran negotiations and easing concerns over disruptions to oil supplies through the Strait of Hormuz. Although lower energy prices offered temporary relief by easing concerns over India's import bill, traders remained cautious, citing higher US Treasury yields and a stronger dollar that kept most Asian currencies under pressure. Earlier this week, the Reserve Bank of India was reportedly seen selling US dollars near the 94.75 level, but the currency continued to weaken after the intervention eased. Investors also assessed recent US economic data and remarks from Federal Reserve officials, reinforcing the importance of containing inflation, supporting demand for the US dollar.
2026-07-02
Indian Rupee Extends Losses
The Indian rupee hovered around 94.7 per dollar, extending its recent losses as rising US Treasury yields strengthened the greenback and weighed on Asian currencies. Higher bond yields dampened demand for emerging-market assets, while renewed dollar buying and weaker regional currencies kept pressure on the rupee. Market sentiment remained cautious after stronger-than-expected US labor market data reinforced expectations that the Federal Reserve could keep interest rates higher for longer. Investors are now awaiting additional US employment data for further clues on the Fed's policy outlook. Meanwhile, higher oil prices added another headwind for the currency, as firmer crude prices typically increase India's import bill and demand for dollars. Oil gained support after a Qatari official said US envoys in Doha would not hold high-level talks with Iran, casting doubt on near-term diplomatic progress and reducing expectations of a potential increase in Iranian oil supplies.
2026-07-01
Indian Rupee Halts Gains as Oil Rises
The Indian rupee hovered around 94.5 per dollar, halting gains as a stronger US dollar and weakness across Asian currencies weighed on sentiment. Persistent importer hedging, subdued foreign equity inflows, and broad-based dollar strength continued to limit the currency’s upside. Still, lower crude oil prices helped cushion further losses, with Brent crude trading near $72.50 per barrel, close to levels seen before the Iran conflict in late February. Meanwhile, investors assessed data showing India's industrial production rose 5.1% year-on-year in May 2026, up from 4.9% in April. Looking ahead, market participants are also awaiting a slate of domestic economic data, including India's Manufacturing PMI on Wednesday and Services PMI on Friday, for further insights into domestic economic activity. In addition, attention will be on the US June nonfarm payrolls report due on Thursday, a key release that could shape expectations for Federal Reserve policy.
2026-06-29