On August 13, the rupee began the day at 95.36 per US dollar, a slight dip from Tuesday’s close of 95.33. Traders said the fall was mainly due to steady dollar demand from hedgers and the impact of higher oil prices.
Finrex analysts noted that elevated oil prices and uncertainty in the Middle East have limited the rupee’s ability to strengthen. At the same time, India’s strong external liquidity has been a supportive factor.
Oil prices were hovering near $88 a barrel, while the dollar index climbed to 100.01. The rupee’s opening rate of 95.36 reflects these broader market pressures.
The Reserve Bank of India has been actively backing the rupee at a range of 95.41 to 95.45. This support comes as exporters are expected to keep selling the currency at rates above 95.40, provided oil prices remain below $90.
In the wider Asian market, most currencies moved higher against the dollar. The South Korean won gained 0.28%, the Taiwan dollar 0.18%, and the Thai baht 0.09%. The Japanese yen and Singapore dollar each rose about 0.06%.
Conversely, the Indonesian rupiah slipped 0.09% and the Philippine peso fell 0.04% against the dollar.
Overall, the dollar index, which measures the greenback against a basket of currencies, was trading around 99.93. The rupee’s modest decline reflects a combination of global market forces and domestic intervention.