Rupee Strengthens Against Dollar Amid Weaker US Currency and Rising Oil Prices

The Indian rupee has strengthened by 17 paise against the US dollar in early trade on Thursday, August 20, reaching 95.56. This appreciation is attributed to a weak US dollar following the US Treasury's announcement that it will double its buyback operations for longer-dated Treasury bonds.

According to Amit Pabari, MD of CR Forex Advisors, 'Lower long-term yields and concerns around fiscal support can reduce the appeal of dollar assets.'

The dollar index has fallen to its lowest level since late May due to reduced expectations of further Federal Reserve tightening. Brent crude prices are also higher by 0.32% at $91.91 per barrel in futures trade, exerting pressure on India's import bill.