The Indian rupee opened stronger against the US dollar on Friday, August 21, gaining 9 paise to ₹95.65 per dollar, as the US currency weakened in overseas markets.
The stronger opening comes after the rupee closed at ₹95.7050 per dollar on Thursday, when the currency gained marginally amid continued support from Reserve Bank of India intervention.
The softer dollar has provided some relief to the rupee and other Asian currencies. Reuters reported that the dollar index was around 98.7 on Friday and was heading for a decline of nearly 1% for the week.
However, the currency continues to face significant external pressures. Brent crude was around $93.50 a barrel, with prices on track for a second consecutive weekly gain as the ongoing US-Iran conflict continued to disrupt oil supplies from the Middle East. Higher crude prices remain a concern for India because of its dependence on imported oil.
The Reserve Bank of India has also remained active in the foreign-exchange market. Reuters reported that the RBI’s interventions over the past two weeks have helped anchor the rupee, with state-run banks seen offering dollars in the market, likely on behalf of the central bank.
Despite Friday’s stronger opening, the broader picture remains cautious. Reuters reported that the rupee was on course for a 0.3% weekly decline, highlighting that the latest gain does not necessarily signal a sustained recovery.
For India, the currency’s direction will continue to depend on several competing factors: the movement of the US dollar, crude oil prices, geopolitical developments and the RBI’s management of volatility.
The ₹95.65 opening therefore offers some near-term relief, but sustaining the rupee’s strength will depend on whether pressure from oil prices and global geopolitical risks begins to ease.
