Indian Rupee Rises to Over 3-Week High

The Indian rupee rose to around 95.3 per dollar, extending gains for a fifth consecutive session to a three-week high as the greenback weakened and crude oil prices continued to retreat. Pressure on India's import bill eased after the US dollar posted its biggest one-day decline in three months, while Brent crude futures slipped about 1% to around $88 per barrel amid expectations of a Saudi Arabia-led maritime coalition to strengthen security cooperation in the Red Sea. The currency also remained supported by persistent intervention from the Reserve Bank of India, with traders pointing to continued dollar sales after the central bank intervened aggressively last Friday. Still, market participants cautioned that further appreciation could remain limited if oil prices rebound amid ongoing tensions between the US and Iran.

The Indian rupee hovered around 95.67 per dollar, extending gains for a fourth straight session to a near three-week high, as sustained intervention by the Reserve Bank of India continued to support the currency. The central bank has reportedly sold dollars on each trading day since Friday, helping the rupee recover more than 1% after it intervened aggressively to prevent the currency from slipping to a record low. Traders stated that the RBI's early presence in the market has helped anchor sentiment and set the tone for the rupee. However, further gains remained constrained after the Federal Reserve left interest rates unchanged despite three dissents in favor of a rate hike, lifting the US 30-year Treasury yield to near its highest level in almost two decades. At the same time, upside risks to oil prices persisted after the US launched fresh strikes on Iran, with Brent crude surging nearly 8% on Wednesday before paring some gains in Asian trading.

The Indian rupee weakened to around 96.58 per dollar, hovering near record lows as a sharp surge in crude oil prices and fresh US tariff measures weighed on sentiment. Brent crude jumped more than 7% to above $100 per barrel after Yemen's Houthis attacked two Saudi oil tankers in the Red Sea, exacerbating supply concerns as trade through the Strait of Hormuz remained severely disrupted. Sentiment was further dampened after the US imposed new tariffs of 10% to 12.5% on imports from around 60 economies under a forced-labor investigation, including a 10% duty on Indian goods, fueling concerns over global trade, India's export outlook, and broader emerging-market assets. Investor focus also remained on the Reserve Bank of India, with traders watching for further intervention after state-run banks were reportedly seen selling dollars on the central bank's behalf to curb volatility and prevent the rupee from breaching record lows.