Rupee opens 3 paise lower at 95.44 against US dollar

retained text

The Indian rupee opened 3 paise lower at ₹95.44 against the US dollar on Thursday, 27 August, as softer crude oil prices and sustained intervention by the Reserve Bank of India (RBI) helped offset pressure from expectations of a possible Federal Reserve rate hike next month and continued dollar demand for hedging.
The rupee had strengthened to a more than one-week high on Tuesday, breaking out of its recent range-bound movement. The USD/INR pair remained largely stuck in the 95.70–95.75 range for most of the session before gaining momentum later in the day and settling around 95.46, aided by a sharp decline in Brent crude prices.
Oil prices have found some relief as Iran and Oman continue discussions on a temporary shipping corridor through the Strait of Hormuz. While no final agreement has been reached, the ongoing negotiations have eased concerns over a prolonged disruption to global energy supplies.
Oman remains hopeful of announcing a temporary arrangement, although Iran has maintained that a complete reopening of the strategic waterway would depend on the US meeting several of its conditions. Brent crude has consequently eased to around $86.30 per barrel, offering some respite to major oil-importing economies such as India.
According to market experts, the immediate focus is likely to remain on the direction of diplomatic developments rather than waiting for a formal agreement. However, they cautioned that the situation remains fragile, with differences between Washington and Tehran posing a risk to any potential resolution.
Experts noted that US inflation remained at 3.7% in July, staying above the Federal Reserve's 2% target for the 65th consecutive month. Persistent inflation has reduced expectations of an immediate rate cut, with markets assigning a greater probability to the Fed keeping interest rates unchanged in September.
The possibility of further monetary tightening later this year also remains on the radar, supporting the US dollar. The Dollar Index has climbed back above the 99 mark, keeping pressure on emerging-market currencies, including the Indian rupee.
Meanwhile, the Reserve Bank of India (RBI) appears to be using improved foreign currency inflows to rebuild its reserves and reduce its forward dollar exposure, experts said.
After selling dollars for two consecutive months to support the rupee, the central bank turned a net buyer in June, purchasing around $561 million, indicating an improvement in foreign currency inflows.
The RBI's measures related to FCNR(B) deposits, Overseas Foreign Currency Borrowings (OFCB) and External Commercial Borrowings (ECB) have together attracted nearly $73 billion in foreign exchange inflows as of August 21.
Rather than allowing these inflows to trigger a sharp appreciation in the rupee, the RBI appears to have used the opportunity to strengthen its balance sheet. Net outstanding forward dollar sales declined from $106.7 billion in May to $103.3 billion in June, suggesting that the central bank has begun unwinding part of its sizeable forward dollar position, experts said.
According to Amit Pabari, MD, Research Team, CR Forex Advisors, said the FCNR(B) window remains open until 31 August and should continue to provide near-term support to the rupee. The 95.15–95.20 zone is expected to act as an important support area for USD/INR.
However, the broader view continues to favour rupee depreciation, with the pair likely to move towards the 96.20–96.50 zone over the coming weeks.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.

document fetched 2026-08-27 13:05 · canonical https://livemint.com/market/stock-market-news/rupee-opens-3-paise-lower-at-95-44-against-us-dollar-11787801751874.html