Noida, Aug 20 (APAC Media): The Indian rupee opened 7 paise higher at ₹95.64 against the US dollar on Friday, tracking a softer dollar and cautious movements in global markets.
The domestic currency had settled at ₹95.71 against the greenback in the previous session.
However, gains in the rupee remained limited as elevated crude oil prices and continued demand for dollars from importers weighed on sentiment. Brent crude was trading above $93 a barrel amid ongoing geopolitical concerns, raising worries over India’s import bill.
Market participants said the Reserve Bank of India has remained active in the foreign exchange market to contain sharp movements in the rupee. Intervention by state-run banks has also helped limit volatility in the currency.
The rupee has remained under pressure despite measures aimed at attracting foreign currency inflows. RBI Governor Sanjay Malhotra recently said such measures could generate at least $80 billion in inflows, with around $56.85 billion already mobilised.
Meanwhile, India’s imports of Russian crude are expected to decline this month, potentially increasing the country’s reliance on supplies from other sources and putting additional pressure on the import bill.
Analysts expect the rupee to remain volatile in the near term, with crude oil prices, dollar movements, foreign fund flows and geopolitical developments likely to guide trading.
The ₹95.30-₹95.50 range is seen as an important support zone, while a sustained move towards ₹96.20-₹96.50 could remain a possibility if pressure on the currency persists.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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