Rupee Surges as Global Crude Oil Prices Dip and US-Iran Tensions Ease

The Indian rupee experienced a significant surge on August 3, 2026, rising to 95.12 against the US dollar in early trade. This gain is attributed to a decline in global crude oil prices and a weaker greenback following US President Donald Trump's decision to hold off strikes against Iran. The rupee has been in positive territory for five consecutive days, gaining 7 paise to settle at 95.43 against the US dollar on Friday.

Forex traders attributed this strength to Foreign Institutional Investors' inflows, a rise in India's forex reserves, and Reserve Bank of India (RBI) support. The country's forex reserves jumped $6.118 billion to $682.354 billion during the week ended July 24, according to RBI data released on Friday.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, stated that 'the rupee was supported by lower Brent crude oil prices, a weaker dollar, and sustained foreign portfolio inflows, and continued RBI presence in the foreign exchange market.'