Rupee Tumbles on Oil Prices, RBI Intervenes

The Indian rupee started trading on August 19 with a minor loss against the US dollar, weighed down by increasing oil prices and a deteriorating risk backdrop. The currency opened at 95.70 per dollar, slightly lower than its previous close of 95.68. Finrex analysts suggest that despite the oil shock, the rupee is showing resilience due to suspected continued intervention from the Reserve Bank of India (RBI).

RBI may maintain a certain level, possibly around 95.80, for the entire day, but oil companies will continue buying dollars to settle their payables, according to Finrex. Exporters are advised to sell at the top or maximum within a week, hedging on the sides, while importers should look to buy dips as usual.