Rupee Gains as Crude Oil Prices Decline Ahead of RBI Policy

The Indian rupee has strengthened against the US dollar in early trade on August 5, fueled by declining crude oil prices and optimism over US-Iran talks.

The rupee gained 39 paise to 94.89 against the US dollar at the interbank foreign exchange market, following a decline in Brent crude prices by 1.11% to USD 78.48 per barrel in futures trade.

Forex traders are awaiting the Reserve Bank of India's (RBI) monetary policy decision for further cues on interest rates and inflation.

Amit Pabari, MD at CR Forex Advisors, said that even if the RBI keeps the repo rate unchanged at 5.25%, any indication of a more cautious stance on inflation could have a bigger impact on the rupee than the policy decision itself.