Rupee Depreciates by 2 Paise Amid Rising Oil Prices and Strong US Bond Yields

The Indian rupee depreciated by 2 paise to settle at 95.76 against the US dollar on August 19, 2026, due to a sharp rise in global crude oil prices amid heightened tensions in West Asia.

Forex traders attributed the decline to a strong US bond yield and higher crude oil prices, which kept markets on edge.

V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, said that so long as crude oil prices remain elevated, the rupee will continue to be mildly weak.

However, he noted that there is no room for a sharp depreciation since India has adequate forex reserves and foreign fund inflows have been better than expected under the FCNR (B) scheme.