Rupee Bounces on Friday, but Oil Prices Cast Shadow

The Indian rupee has shown some improvement on Friday (August 28), but its renewed hope for stability is dampened by rising crude oil prices and a steady gold market.

After opening at 95.51 per US dollar, the rupee closed at 95.54 against the previous day's close. This week started positively, with the currency opening at 95.64 on Monday against the greenback.

The 10-year bond yield dipped to 6.94%, but the rupee is still facing challenges due to continuous hedging demand from domestic corporations and irregular maturity of derivative contracts, exacerbated by elevated oil prices.