Rupee Gains Ground At Open As Crude Oil Prices Ease

The Indian rupee opened slightly stronger against the U.S. dollar on Friday, August 14, helped by a decline in crude oil prices after the currency faced sustained pressure during the week. The rupee began trading at ₹95.36 per dollar, compared with Thursday’s close of ₹95.44.

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Rupee Tracks Crude Oil Prices

Finrex expects the rupee to remain around ₹95.35 per dollar, with Brent crude prices easing to about $86.70 a barrel. The dollar index, however, remained firm near 99.95, limiting the scope for a sharper recovery in the Indian currency.

The Reserve Bank of India’s support around the ₹95.45 per dollar level has also kept the rupee within a relatively narrow trading range. Finrex said exporters could consider selling dollars around ₹95.45 for cash and near-term export receivables, while importers could continue purchases during declines.

The movement in crude oil prices remains important for the rupee because India relies heavily on imported crude. A sustained increase in oil prices can raise the country’s import bill and increase demand for dollars.

Asian Currencies Trade Mixed

Asian currencies had a mixed start on Friday. The South Korean won gained 0.15% against the U.S. dollar, while the Taiwan dollar advanced 0.17%. The Japanese yen also moved higher, rising 0.06%.
Elsewhere, the Philippine peso declined 0.18% and the Thai baht slipped 0.10%. The Indonesian rupiah was unchanged during early trade.

The mixed performance across regional currencies came as the dollar index remained close to 99.95, keeping pressure on emerging-market currencies despite the easing in crude oil prices.

RBI Support Keeps Rupee In Focus

The rupee has remained under pressure amid elevated crude oil prices and movements in the U.S. dollar. The central bank’s presence around the ₹95.45 level has helped prevent a wider decline, while exporters’ dollar selling has provided another source of support.

For the rupee, the direction of crude oil prices will remain a key factor alongside movements in the dollar index. Brent crude price levels near $86.70 on Friday provided some relief compared with the elevated levels seen earlier in the week.

The opening move leaves the rupee only modestly away from the ₹95.45 level being watched by the market. Currency movements during the session will depend on changes in crude oil prices, the dollar and broader Asian currency trends.