Rupee Holds Near Two-Week High

2026-08-27 03:46 By Mariene Camarillo 1 min. read

The Indian rupee steadied to around 95.4 per dollar, hovering near two-week highs after the holiday break as lower oil prices and sustained Reserve Bank of India intervention offset expectations of a Federal Reserve rate hike next month and persistent dollar demand for hedging.

The rupee had settled 0.35% higher on Tuesday before FX and money markets closed for a holiday on Wednesday.

Brent crude extended its decline to around $87.30 a barrel, while the RBI has intervened almost daily over the past two weeks, particularly when USD/INR moved toward the 95.60-95.80 range, limiting gains in the dollar.

Meanwhile, the dollar index held near an eight-day high after US inflation data revived expectations of a September Fed rate hike, with markets awaiting Fed Chair Kevin Warsh's speech at Jackson Hole for further clues on the interest-rate outlook.

Persistent importer dollar demand is also expected to limit further downside in USD/INR.



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Rupee Holds Near Two-Week High
The Indian rupee steadied to around 95.4 per dollar, hovering near two-week highs after the holiday break as lower oil prices and sustained Reserve Bank of India intervention offset expectations of a Federal Reserve rate hike next month and persistent dollar demand for hedging. The rupee had settled 0.35% higher on Tuesday before FX and money markets closed for a holiday on Wednesday. Brent crude extended its decline to around $87.30 a barrel, while the RBI has intervened almost daily over the past two weeks, particularly when USD/INR moved toward the 95.60-95.80 range, limiting gains in the dollar. Meanwhile, the dollar index held near an eight-day high after US inflation data revived expectations of a September Fed rate hike, with markets awaiting Fed Chair Kevin Warsh's speech at Jackson Hole for further clues on the interest-rate outlook. Persistent importer dollar demand is also expected to limit further downside in USD/INR.
2026-08-27
Rupee Anchored by RBI, Inflows
The Indian rupee hovered near 95.4 per dollar, with gains limited by steady corporate dollar demand, derivative contract maturities, and elevated oil prices, while expectations of continued RBI intervention helped keep the currency range-bound. Foreign portfolio inflows offered some support, with overseas investors purchasing more than $2.5 billion of Indian equities in August, extending a shift from nearly $28 billion of outflows over the previous four months. Meanwhile, the dollar remained close to three-month lows despite some safe-haven demand after the US expanded sanctions against Iran, while plans to increase buybacks of longer-dated Treasuries helped contain upward pressure on US borrowing costs. Against this backdrop, the rupee has stayed within a narrow 95.45-95.75 range over the past two weeks. Both the FX and debt markets will be closed on Wednesday in observance of Eid-e-Milad, with trading resuming on Thursday.
2026-08-24
Rupee Steadies as RBI, Weak Dollar Offset Oil
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.
2026-08-20