Rupee Starts August 18 Lower At ₹95.67 Against U.S. Dollar Amid Higher Oil Prices

The Indian rupee slipped 6 paise at Tuesday’s opening as rising crude prices and higher U.S. bond yields weighed on the currency. The move also came amid continued market attention on the Reserve Bank of India’s decision to bring forward the deadline for its swap facility linked to deposits raised from non-resident Indians.
The rupee opened at ₹95.67 per U.S. dollar, against its previous close of ₹95.61.

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Oil Prices And Middle East Tensions In Focus

Finrex expects the rupee to open around ₹95.72, on account of rising oil prices and continued uncertainty on the Strait of Hormuz. The United States and Iran remain at odds over the strategic waterway, while discussions aimed at resolving the issue have yet to produce an agreement.

The geopolitical situation has kept crude prices elevated, creating another pressure point for the Indian currency. India is heavily dependent on imported crude oil, making movements in the crude price relevant for the country’s external payments and currency market.

Finrex said exporters could look to sell dollars around the ₹95.75-₹95.80 levels during the morning session, while importers could use declines in the dollar-rupee pair to meet their requirements.

Asian Currencies Mostly Gain

The rupee’s weaker opening came despite a largely positive trend among Asian currencies against the U.S. dollar.

The South Korean won led the gains, rising 0.529%, while the Indonesian rupiah advanced 0.163%. The Malaysian ringgit strengthened 0.20%, followed by the Taiwan dollar at 0.097%.

The Chinese renminbi gained 0.056%, while the Thai baht and Singapore dollar rose 0.051% and 0.031%,

respectively. The Japanese yen edged up 0.013%.
The Philippine peso was the only currency among those listed to weaken, declining 0.162% against the U.S. dollar.

Dollar Remains Near Multi-Month Lows

The U.S. dollar remained close to multi-month lows against several major currencies on Tuesday. Market expectations around the timing of monetary policy tightening in the United States have eased, limiting support for the greenback.

At the same time, uncertainty linked to the conflict in the Middle East has kept global market sentiment fragile. Developments around the Strait of Hormuz remain particularly relevant for currency and energy markets because of the waterway’s role in global oil shipments.

For investors tracking the rupee dollar rate, the domestic currency’s movement will continue to be influenced by crude prices, global dollar trends, foreign exchange flows and developments in the Middle East.

Rupee Trading In Focus

The rupee’s opening level of ₹95.67 on August 18 marks a modest decline from the previous session. The currency’s performance during the day will be watched alongside movements in crude oil, U.S. bond yields and Asian currencies.

The latest session also comes after the RBI brought forward the deadline for its swap facility for deposits raised from non-resident Indians, adding another domestic factor to the foreign exchange market. These developments leave the rupee sensitive to both global and domestic market movements as trading progresses.