3 weeks ago
Rupee Settles Higher at 95.33 as Brent Nears USD 90
The rupee is India's money, and the dollar is America's money.
On Wednesday, the rupee at first lost a little value, going from 95.36 to 95.42 for one dollar, but later it gained it back and finished at 95.33.
That means the rupee ended the day slightly stronger than it started.
One big reason currencies move is the price of oil, called Brent crude.
Oil became more expensive, getting close to 90 dollars for one barrel.
Oil is important because ships, trucks and planes need it, and India buys a lot of it.
A narrow waterway called the Strait of Hormuz is where many oil ships travel, and people worried that the United States and Iran might not make a deal to keep it safe.
There were also reports of attacks on ships.
Because oil stayed expensive, India's stock markets went down a little.
A ratings group called Fitch said India's credit rating stays at BBB- for the 20th year in a row, and warned about money pressure from young people protesting over jobs.
The rupee settled 3 paise higher at 95.33 against the US dollar on Wednesday, after slipping 6 paise to 95.42 in early trade.
Brent crude traded near USD 90 per barrel, up 0.07 per cent at USD 88.97, as hopes of a quick US-Iran agreement and Strait of Hormuz reopening faded.
Traders said the US CPI print is key for the rupee-dollar pair, as a hotter-than-expected reading could strengthen September Fed rate-hike expectations.
Sensex declined 187.90 points to close at 77,966.35, while Nifty dipped 35.75 points to 24,435.95, with FIIs offloading Rs 1,002.50 crore.
Fitch Ratings retained India's sovereign credit rating at 'BBB-' for the 20th straight year, flagging fiscal pressure risks from youth protests over jobs.
- Who
- Forex traders, Anil Kumar Bhansali of Finrex Treasury Advisors LLP, Amit Pabari of CR Forex Advisors, the Reserve Bank of India, and Fitch Ratings.
- What
- The rupee settled 3 paise higher at 95.33 against the US dollar on Wednesday after dipping to 95.42 in early trade, with Brent crude trading near USD 90 per barrel.
- Where
- India's interbank foreign exchange market in Mumbai, with oil supply concerns focused on the Strait of Hormuz.
- When
- Wednesday, August 12, a day after the rupee fell 6 paise to 95.36 on Tuesday.
- Why
- Fading hopes of a quick US-Iran agreement and reopening of the Strait of Hormuz, reports of attacks on shipping, and elevated Brent crude prices.
Key facts
- Rupee close vs US dollar
- 95.33, up 3 paise
- Previous close
- 95.36 on Tuesday
- Intraday range
- 95.24-95.43
- Brent crude
- USD 88.97 per barrel, up 0.07 per cent
- Dollar index
- 99.85, up 0.03 per cent
- Sensex & Nifty
- 77,966.35 (down 187.90 pts) and 24,435.95 (down 35.75 pts)
- FII net activity
- Sold Rs 1,002.50 crore on Wednesday
- Fitch India rating
- BBB- retained for 20th straight year
Quotes
Anil Kumar Bhansali
Head of Treasury and Executive Director at Finrex Treasury Advisors LLP
“"Rupee opened at 95.42 with oil prices slightly down at USD 89.36 per barrel while the dollar index was at 99.83 virtually unchanged. Oil companies continue to buy US dollars for their daily requirements while RBI continues to support the rupee at various levels daily."”
deccanchronicle.com
“"Markets are largely in wait‑and‑watch mode ahead of the US inflation data, with the dollar receiving some support from elevated oil prices but limited by expectations that inflation may continue to moderate."”
deccanchronicle.com





