Rupee rises 24 paise to close at 95.46 against US dollar

The Indian rupee pared its initial losses and settled for the day higher by 24 paise at 95.46 (provisional) against the US dollar on Tuesday. Market participants noted that the recovery was driven by positive domestic markets, a weaker greenback, and a fall in crude oil prices.

At the interbank foreign exchange market, the rupee opened at 95.74. During the session, it touched an intraday high of 95.40 before finally settling at 95.46 against the greenback, marking a 24-paise gain from its previous close. On Monday, the currency had settled with a marginal gain of 1 paisa at 95.70 against the US dollar.

Forex traders indicated that overall weakness in the US dollar, stemming from declining odds of an interest rate hike, may continue to support the rupee at lower levels. The USD/INR pair remained largely range-bound around the 95.50–96.00 band. Oil prices and upcoming interventions by the Reserve Bank of India are expected to remain key near-term drivers for the currency.

Externally, the dollar index—which measures the strength of the greenback against a basket of six major currencies—was trading lower by 0.04 percent at 98.96. Meanwhile, Brent crude, the global benchmark for oil, traded lower by 2.99 percent at $89.41 per barrel in futures trade.

On the domestic market front, equity indices posted gains. The Sensex climbed 286.98 points to settle at 77,656.09, while the Nifty advanced 115.50 points to end the session at 24,334.55. Exchange data showed that foreign institutional investors purchased equities worth ₹1,181.66 crore on a net basis on Monday.

On the macroeconomic front, data from the Reserve Bank of India indicated that its special USD-INR forex swap facility for FCNR(B) deposits, Overseas Foreign Currency Borrowings, and External Commercial Borrowings has mobilized foreign exchange inflows of $73 billion as of August 21, 2026. This reflects strong backing and participation from Non-Resident Indians.

"Fluctuations in the foreign exchange market have a direct impact on corporate planning, import costs, and overall macroeconomic stability in the country. The recent resilience shown by the rupee, supported by falling crude prices and strong foreign exchange inflows through RBI facilities, provides a stable environment for businesses operating in domestic and international markets. Founders and business leaders must continue to monitor currency trends closely while managing their cross-border transactions and financial liabilities." — Dr. Shishir Gupta, Founder & CEO, StartupLanes