2 weeks ago
Rupee opens 6 paise higher at 95.38 against US dollar
The rupee is the money used in India, and the dollar is the money used in America.
On Friday morning, the rupee got a little bit stronger against the dollar.
That means one dollar became worth slightly fewer rupees than before.
The rupee felt better because the price of oil, which India buys from other countries, went down a little.
Oil is very important to India, and when oil costs more, it usually hurts the rupee.
The Reserve Bank of India, the country's central bank, has also been helping by stepping in to buy and sell currency.
Money coming into India from foreign investors is helping too.
But experts say the rupee might still become weaker over time.
They watch things like ships carrying oil to understand how healthy the oil trade really is.
The Indian rupee opened 6 paise higher at 95.38 against the US dollar on Friday, 14 August.
The rupee is down about 0.2% for the week, with near-daily Reserve Bank of India interventions helping limit its decline.
Brent crude is trading around $87 a barrel, but tanker freight rates have risen nearly 33% since early July, signalling continued supply risks.
US producer prices were unchanged in July, easing the Dollar Index from recent highs near 100 and reducing expectations of a Federal Reserve rate hike.
Foreign portfolio investors have invested a net $1.7 billion in Indian equities so far in August, following $2.1 billion of inflows in July.
- Who
- The Indian rupee, the Reserve Bank of India, foreign portfolio investors, and experts such as Amit Pabari of CR Forex Advisors.
- What
- The rupee opened 6 paise higher at 95.38 against the US dollar, aided by softer oil prices, weak US data, and FPI inflows.
- Where
- India's foreign exchange market, against the US dollar.
- When
- Friday, 14 August.
- Why
- A pullback in crude oil prices, unchanged US producer prices easing the dollar, and continued foreign portfolio investment inflows supported the rupee.
Supportive View
Cautious View
Rupee's near-term direction
Supportive View
Softer US data has reduced expectations of a Federal Reserve rate hike, easing the Dollar Index from near 100, and continued FPI inflows are providing key support to the rupee.
Cautious View
Crude's effective price floor has shifted higher to $80 a barrel, NDF maturities and persistent importer dollar demand remain pressures, and the broader structural picture still tilts towards rupee depreciation.
Reading the oil market
Supportive View
Day-to-day crude price moves and calmer headlines suggest easing pressure, with Brent trading around $87 a barrel.
Cautious View
Tanker freight rates have risen nearly 33% since early July and vessel traffic through key waterways remains well below pre-war levels, pointing to continued supply and transportation risks.
Key facts
- USD/INR opening rate
- 95.38 (up 6 paise)
- Rupee weekly change
- Down about 0.2%
- Brent crude price
- Around $87 a barrel
- Tanker freight rate rise
- Nearly 33% since early July
- Crude oil effective price floor
- $80 a barrel, up from $60 before the war
- US producer prices (July)
- Unchanged, below the 0.2% expected rise
- FPI inflows in August
- Net $1.7 billion in Indian equities
- FPI inflows in July
- $2.1 billion
- Key USD/INR support zone
- 95.00-95.10
Sources
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