Indian Rupee Rises to Over 3-Week High

The Indian rupee hovered near 95.6 per dollar, trading in a tight range as strong capital inflows and continued Reserve Bank of India intervention helped cushion the currency, while month-end dollar demand and elevated oil prices limited gains. The RBI stated that it had garnered nearly $73 billion through measures introduced in June to strengthen the balance of payments, boosting its capacity to support the rupee. Market participants remained cautious about building long-dollar positions amid expectations of RBI intervention around 95.80 per dollar. Meanwhile, month-end derivative maturities and corporate dollar payments could add pressure to the currency, while Brent crude remained elevated near $94 a barrel amid the ongoing Iran conflict. A weaker dollar also provided some support, with the dollar index holding around 98.8 after posting significant losses last week as higher US Treasury yields raised concerns over the country’s growing debt burden.

The Indian rupee hovered near 95.68 per dollar, steadying after recent gains as ongoing RBI intervention and a broadly weaker US dollar cushioned pressure from rising crude prices and persistent importer hedging demand. Brent crude hovered just below $94 a barrel after rising more than 2% in the previous session and has climbed nearly 12% over the past two weeks, as uncertainty over the US-Israeli war with Iran kept supply concerns elevated. Meanwhile, the dollar remained under pressure and was on track for a weekly loss, after the US Treasury doubled buybacks of longer-maturity securities for the next quarter, although the selloff in longer-dated Treasuries resumed on Thursday, cutting short the relief rally. Traders expect the RBI to continue intervening, limiting intraday volatility and keeping the rupee in a narrow range, with risks still tilted to the downside.

The Indian rupee hovered around 95.74 per dollar, extending losses for a third consecutive session to a three-week low as higher oil prices, elevated US Treasury yields, and a risk-off mood weighed on the currency. Brent crude neared $92 a barrel, rising for a fourth straight day amid uncertainty over the Strait of Hormuz, while the 30-year US Treasury yield climbed to its highest level since 2007, further dampening risk appetite. The rupee also remained under pressure after the RBI brought forward by a month the deadline for its discounted foreign-currency swap facility for non-resident Indian deposits, souring near-term sentiment. Meanwhile, strong underlying dollar demand continued to weigh on the currency, although daily RBI intervention through dollar sales helped limit the decline and cap volatility.