Archive · 28 Aug 2026
Rupee Slips 11 Paise as Strong Dollar Pressures Markets
The Indian rupee became a little weaker against the US dollar on Thursday.
It finished at 95.55 rupees for one dollar.
The dollar was stronger in global markets, which put pressure on the rupee.
Indian share markets also fell that day.
Lower oil prices usually help the rupee, but they did not fully offset the other pressures.
Oil prices eased as Iran and Oman continued discussing a temporary shipping corridor.
Traders were watching a speech by US Federal Reserve Chair Kevin Warsh for clues about the currency market.
An analyst said large inflows from special schemes could help the rupee later.
He expects the rupee to trade mostly between 95 and 96 in the near term.
The rupee settled 11 paise lower at 95.55 per US dollar on August 27.
It opened at 95.50 and moved between a reported high of 95.40 and low of 95.56.
Broad strength in the US dollar and weak Indian equities outweighed support from easing crude prices.
Brent crude traded at USD 88.38 per barrel as Iran-Oman discussions reduced fears of prolonged supply disruption.
Kotak Securities analyst Anindya Banerjee estimated scheme-related inflows could reach USD 85-90 billion and support the rupee.
- Who
- The Indian rupee, the US dollar, forex traders, US Federal Reserve Chair Kevin Warsh, and Kotak Securities analyst Anindya Banerjee.
- What
- The rupee declined 11 paise to settle at 95.55 against the US dollar.
- When
- Thursday, August 27; the Indian foreign exchange market had been closed the previous day for Id-e-Milad.
- Where
- The movement was reported in Mumbai’s interbank foreign exchange market.
- Why
- A strong US dollar and weak domestic markets pressured the rupee, offsetting support from lower crude oil prices.
Market Pressures
Rupee Support
Near-term direction
Market Pressures
Forex traders said the strong US dollar and weak domestic markets pushed the rupee lower despite easing crude prices.
Rupee Support
Anindya Banerjee said substantial inflows from special swap and deposit schemes could support the rupee’s appreciation.
Expected trading range
Market Pressures
The rupee faced immediate pressure after settling at 95.55 per dollar.
Rupee Support
Banerjee expected an operational range of 95 to 96, with a close below 95 potentially opening a move toward 94.
- Rupee close
- 95.55 per US dollar, provisional
- Daily move
- Down 11 paise from the previous close
- Intraday range
- Reported high of 95.40 and low of 95.56
- Dollar index
- 99.21, up 0.05 per cent
- Brent crude
- USD 88.38 per barrel in futures trade, up 0.61 per cent
- Indian equities
- Sensex fell 539.35 points to 76,933.59; Nifty fell 116.90 points to 24,090.85
- Estimated scheme inflows
- USD 85-90 billion, according to Anindya Banerjee
