Rupee Opens Lower At ₹95.44 Against U.S. Dollar; RBI Intervention In Focus

The Indian rupee opened 3 paise weaker at ₹95.44 against the U.S. dollar on August 27, compared with its previous close of ₹95.41. Trading was subdued as investors looked for fresh cues, while lower Brent crude prices offered some support to the domestic currency.

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Indian currency and debt markets were shut on Wednesday, August 26, due to a public holiday.

RBI Intervention Keeps Currency In Focus

The Reserve Bank of India has remained active in the foreign-exchange market in recent weeks, with intervention aimed at limiting a decline in the rupee below the ₹96 mark, as per the market information cited in the report.

Importers and oil marketing companies have also been using current currency levels to hedge their dollar requirements. Corporate demand for the U.S. currency, however, continued to weigh on the rupee during Thursday’s opening trade.

The currency has remained under pressure despite the RBI’s presence in the market. The central bank’s dollar-selling activity has been an important factor for traders monitoring the rupee’s movement around the ₹95-₹96 range.

Crude Oil Prices Provide Some Support

Brent crude was trading near $87 a barrel, lower than recent levels. The decline came amid expectations that discussions involving Iran and Oman could eventually help reopen the Strait of Hormuz, an important route for global energy shipments.

Lower crude oil prices can ease the dollar demand associated with India’s oil imports, providing some support to the rupee. However, the impact was limited at the open as corporate dollar buying remained a factor.

For currency watchers, the movement in the rupee is also closely tied to developments around crude oil and the dollar. Any sustained change in either could influence demand and supply in the domestic foreign-exchange market.

USD/INR Levels Remain On Radar

Amit Pabari, managing director at CR Forex Advisors, said the ₹95.15-₹95.20 zone could provide important support for the USD/INR pair. He added that the broader trend remained tilted towards rupee weakness and placed the pair’s potential range over the coming weeks at ₹96.20-₹96.50.

The rupee’s latest opening comes after the currency ended the previous trading session at ₹95.41. With Wednesday’s market holiday creating a one-session gap, Thursday’s trade also brings renewed attention to movements in the dollar and crude oil.

The domestic currency began the session only slightly below its previous close, keeping it within the recent trading range. RBI activity, corporate dollar demand, crude oil prices and developments surrounding the Strait of Hormuz remain key factors for the rupee as trading resumes after the holiday.