Rupee Finds Temporary Relief from Crude Oil Price Drop

The Indian rupee has opened stronger against the US dollar, reaching 95.14 on Monday, August 3rd. The currency's gain is attributed to lower crude oil prices and intervention by the Reserve Bank of India (RBI). Brent crude fell over 4% to $84 a barrel after US President Donald Trump announced peace talks with Iran would resume.

The RBI has been selling dollars across multiple levels, as reported by Reuters. Market experts believe this sustained intervention, combined with softer oil prices, has improved sentiment towards the rupee. Concerns about the currency weakening beyond 97 per dollar have shifted to expectations of a near-term stabilisation around current levels.