Rupee Rallies to 95.14 on Crude Oil Price Drop and RBI Support

The Indian rupee has strengthened to its strongest level since July 7, reaching 95.14 against the US dollar on August 3.

This recovery is driven by three key factors: lower crude oil prices, robust foreign currency inflows under the RBI's special swap facility, and continued central bank support.

Crude oil prices have fallen sharply after US President Donald Trump said plans for an attack on Iran had been put on hold to allow more time for negotiations over Tehran's nuclear programme. Brent crude for October delivery dropped nearly 5% to below $84 per barrel, easing pressure on the rupee.

The RBI's FCNR swap scheme has also brought in significant foreign currency inflows, with a total of $40.82 billion mobilized till July 31. This includes $36.73 billion through Foreign Currency Non-Resident (Bank) deposits and $2.58 billion via Overseas Foreign Currency Borrowings.

The central bank's intervention has also continued to support the currency, with repeated RBI intervention across different levels helping the rupee recover from recent lows.