1 week ago
Indian Rupee Falls as Dollar Strengthens Amid Market Caution
The Indian rupee became a little weaker against the US dollar on Monday.
One dollar cost 95.74 rupees at the end of trading.
The rupee had started the day slightly stronger but gave up those gains.
Traders were worried about demand from companies buying goods from other countries.
They were also watching oil prices and possible new US sanctions on Iran.
The US dollar became slightly stronger against other major currencies.
Indian stock markets fell as well.
An analyst said the rupee may stay slightly weak but could get some support if the US dollar weakens.
The rupee fell 3 paise to close provisionally at 95.74 against the US dollar on Monday.
It opened at 95.65 and traded between 95.64 and 95.75 in the interbank market.
Traders cited importer demand, crude-oil concerns and caution over possible new US sanctions targeting Iran.
The dollar index rose 0.18% to 98.98, while the Sensex and Nifty also declined.
India’s foreign-exchange reserves rose $9.905 billion to $716.907 billion in the week ended August 14.
- Who
- The Indian rupee, US dollar, forex traders and analyst Anuj Choudhary of Mirae Asset ShareKhan.
- What
- The rupee fell 3 paise to close provisionally at 95.74 per US dollar.
- Where
- India’s interbank foreign-exchange market, in a report datelined Mumbai.
- When
- Monday, August 24, 2026; the reserves data covered the week ended August 14.
- Why
- A stronger dollar, importer demand, crude-oil concerns, weak domestic markets and caution over possible US sanctions on Iran weighed on the rupee.
Factors Pressuring the Rupee
Factors Offering Potential Support
Near-term exchange-rate outlook
Factors Pressuring the Rupee
Anuj Choudhary said uncertainty involving the United States and Iran, elevated crude-oil prices and persistent importer demand could keep the rupee under slight negative pressure.
Factors Offering Potential Support
Choudhary said broader weakness in the US dollar, linked to declining odds of a rate hike, could support the rupee at lower levels.
Oil-price signals
Factors Pressuring the Rupee
Forex traders cited rising Brent crude prices as a factor weighing on investor sentiment and the rupee.
Factors Offering Potential Support
The report separately said Brent crude futures were trading 1.62% lower at $92.86 per barrel, a market signal that could ease some oil-related pressure.
Key facts
- Closing rate
- 95.74 rupees per US dollar, provisional
- Daily change
- Down 3 paise from Friday’s close of 95.71
- Trading range
- Opened at 95.65; intraday high of 95.64 and low of 95.75
- Dollar index
- 98.98, up 0.18%
- Domestic stocks
- Sensex fell 171.72 points to 77,369.11; Nifty fell 32.95 points to 24,219.05
- Foreign-exchange reserves
- Rose $9.905 billion to $716.907 billion in the week ended August 14
- Analyst forecast
- USD/INR spot expected to trade between 95.50 and 96, with a slight negative bias
Quotes
Anuj Choudhary
Research Analyst at Mirae Asset Sharekhan
“We expect the rupee to trade with a slight negative bias on uncertainty between the US and Iran. Elevated crude oil prices may also weigh on the rupee. However, overall weakness in the US dollar on declining odds of a rate hike may support the rupee at lower levels. USDINR spot price is expected to trade in a range of 95.50 to 96”
freepressjournal.in
Sources
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