Rupee Defies Oil Price Surge with Modest 0.7% Decline

The Indian rupee showed unexpected resilience in July, ending the month down just 0.7% despite a sharp 20% surge in Brent crude prices.

Analysts attribute this stability to the Reserve Bank of India's (RBI) measures announced in June, which encouraged overseas inflows and helped manage the risks arising from India's widening current account deficit.

The RBI's swap facility has mobilized $40.8 billion, with foreign currency non-resident bank deposits accounting for the largest share at $36.7 billion.