Rupee Gains 6 Paise Despite Persistent Pressure

The Indian rupee opened slightly stronger against the US dollar on Friday, August 14, gaining 6 paise to 95.38 per dollar compared to Thursday's close of 95.44.

A pullback in crude oil prices provided some relief to the currency after a week of persistent pressure. However, bankers pointed out that the rupee remains under strain, with its roughly 0.2% weekly decline understating the underlying weakness.

The Reserve Bank of India's frequent intervention across multiple levels has helped absorb dollar demand and limit the rupee's movements. According to bankers, maturities in the non-deliverable forward market and strong dollar demand from importers have been key sources of pressure.

Lower oil prices and a supportive risk environment could help the rupee at the open, but gains may remain limited, said a currency trader at a private-sector bank. Persistent RBI intervention has supported the rupee, leaving little room for a sustained recovery even as oil prices ease.