Updated
Updated · The Hindu · Aug 25
Rupee Slips 4 Paise to 95.74 as $92.45 Crude and Importer Demand Weigh
Updated
Updated · The Hindu · Aug 25

Rupee Slips 4 Paise to 95.74 as $92.45 Crude and Importer Demand Weigh

3 articles · Updated · The Hindu · Aug 25

Summary

  • 95.74 per dollar marked the rupee's early Tuesday level, down 4 paise from Monday's 95.70 close after trading in a narrow range.
  • Brent crude at $92.45 a barrel and importer demand for dollars pressured the currency, while renewed Iran-related uncertainty lifted safe-haven demand for the U.S. dollar.
  • RBI intervention through state-run banks helped cap the decline, with traders saying USD/INR has stayed boxed around ₹95.50-96.00 for about two weeks.
  • The dollar index edged up 0.04% to 99.04, while Indian equities opened weaker even as foreign investors were net buyers of ₹1,181.66 crore on Monday.
  • Separately, the RBI's special USD-INR swap facility had drawn $73 billion in forex inflows by Aug. 21, underscoring broader support for India's external funding.

Insights

$73 billion in NRI deposits bought the rupee some time, but what happens when this crucial RBI safety net expires next week?
With the Strait of Hormuz choked, how long can the RBI artificially shield the rupee before soaring crude prices shatter its defenses?