Indian Rupee Hits 5-week Low

The Indian rupee hovered around 96.2 per dollar, remaining under pressure after reaching eight-week lows as sentiment weakened on rising crude oil prices. Brent crude climbed above $85 per barrel amid escalating tensions between the US and Iran, raising concerns over potential supply disruptions through the Strait of Hormuz and increasing India's oil import bill. The rupee has fallen about 1.7% so far this month, moving closer to its record low reached in May. Meanwhile, the positive sentiment from the Reserve Bank of India's recent measures to attract dollar inflows has largely faded, prompting traders to resume buying dollars on dips in anticipation of further rupee weakness. Additional pressure came from more than $14 billion in overseas investment announcements by Indian companies early in the fiscal year, boosting demand for foreign currency, while foreign portfolio outflows and higher oil imports continued to weigh on the rupee and India's foreign exchange reserves.

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.