India Rupee Review
Up most in a day in 7 wks on RBI dlr sales, fall in oil
This story was originally published at 16:35 IST on 27 July 2026
Register to read our real-time news.Informist, Monday, Jul. 27, 2026
By Divya Moolayattil
MUMBAI – The rupee posted it biggest single-day gain in over seven weeks as crude oil prices fell below $90 a barrel after the US and Iran halted attacks to pave the way for further negotiations, dealers said. Public sector banks sold dollars likely for the Reserve Bank of India which further supported the local unit, they said. Banks' dollar sales linked to foreign fund inflows also added to the gains.
"Today was unusually a good day for the rupee. Everything was positive. Crude fell sharply, FPIs were also seen coming in and the market was caught off guard by the RBI's intervention," a dealer at a public sector bank said.
The Indian currency settled at two-week high at 95.9100 a dollar Monday, up 0.7% from its previous close. The Indian unit erased all the losses it recorded in last two weeks and emerged as the best performer among Asian peers Monday. The rupee traded in a wide range of 48 paise during the day. Most Asian currencies rose 0.1-0.7% against the dollar Monday, with the Thai baht being the best performer after the Indian unit.
The rupee started the day on a positive note as crude oil prices slipped after the US and Iran decided to halt strikes and return to the negotiating table. At 1530 IST, Brent crude for September delivery was nearly one-week low at $88.89 a barrel, sharply down from Friday's high of $101.15 a barrel. Crude oil prices had risen nearly $20 a barrel in just two weeks.
The Indian unit was trading rangebound after opening 42 paise higher. However, the RBI's aggressive intervention took the dollar-rupee down by around 30 paise, breaching a crucial 96.00 a dollar. The RBI likely sold arouund $1.5 billion in the spot market Monday, they said. Dealers said that once the rupee hit 96.00 a dollar, stop-losses were triggered on long dollar bets, which further aggravated the Indian currency's rise. The rupee hit a high of 95.7850 a dollar Monday.
However, banks also bought dollars for importers, especially oil marketing companies, noting a lower dollar-rupee level, which weighed on the Indian unit, they said. "They were actively bidding today, probably because they think this is good level and rupee may not appreciate further due to uncertainty in Middle East war," another dealer at a private sector bank said.
Banks' dollar sales linked to foreign fund inflows into Indian government bonds and for a slew of initial public offerings lined up this week boosted the rupee.
Nine companies will debut on D-Street and more than a dozen companies are preparing to raise more than INR 250 billion in August. Among the major firms to debut this week are Manipal Health Enterprises, Juniper Green Energy and MV Electrosystems, which together plan to raise more than INR 113.3 billion. The Nifty 50 and Sensex were up 1% Monday.
They also said positive sentiment prevailed in the market after RBI Governor Sanjay Malhotra said in an interview with the Hindu BusinessLine that recent measures to attract foreign capital had garnered a strong investor response, with banks mobilising nearly $32 billion, largely through Foreign Currency Non-Resident (Bank) deposits, while government securities have attracted more than $7 billion in foreign inflows.
| AT 1530 IST | AT 0900 IST | HIGH | LOW | PREVIOUS (AT 1530 IST) | |
| Spot rupee per $1 | 95.9100 | 96.1475 | 95.7850 | 96.2725 | 96.5625 |
| 1-year dlr/rupee fwd (paise) | 269.23 | 268.24 | 276.33 | 268.02 | 281.67 |
FORWARDS
Dollar-rupee forward premiums fell sharply across tenures Monday as dealers speculated that the Reserve Bank of India sold dollars for forward delivery to neutralise its spot interventions and avert pushing out rupee liquidity, dealers said. The one-year dollar forward premium fell to an over two-week low of 2.79% or 268.02 paise on Monday.
The fall in forward premiums was limited as banks bought dollars actively for forward delivery on behalf of importers, who noted lower dollar-rupee premiums, said dealers.
At 1530 IST, the one-year exact period dollar-rupee forward premium was 2.81%, sharply lower than Friday's close of 2.92%. On an absolute basis, the premium was 269.23 paise, against 281.67 paise Friday.
OUTLOOK
On Tuesday, the rupee is likely to track crude oil prices amid evolving developments in West Asia, dealers said. The domestic currency will also continue to take cues from movement in the dollar index, they said. Traders remain cautious ahead of the US Federal Open Market Committee's meeting Tuesday and Wednesday, which is expected to provide clearer direction for the dollar index.
Dealers expect importers to continue buying dollars, which will weigh on the rupee. However, they also expect the RBI to intervene if the rupee comes under extreme pressure. "I don't think the RBI will step in aggressively when there are good dollar inflows in the market," a dealer at a private sector bank said.
Market participants will also track potential foreign fund inflows from the measures announced by the RBI and the government in June to attract foreign capital, they said.
Dealers see strong technical resistance for the Indian currency at 95.75 per dollar, a break of which may push the Indian unit below 95.50. The rupee is likely to move in a range of 95.70–96.10 against the dollar Tuesday.
India Rupee - World FX: Dlr down as US, Iran halt attacks; krona gains most
| AT 1333 IST | HIGH | LOW | PREVIOUS | |
| GBP/USD | 1.3337 | 1.3364 | 1.3335 | 1.3321 |
| EUR/USD | 1.1398 | 1.1419 | 1.1389 | 1.1377 |
| NZD/USD | 0.5801 | 0.5809 | 0.5788 | 0.5786 |
| AUD/USD | 0.7002 | 0.7011 | 0.6972 | 0.6976 |
| USD/JPY | 163.5050 | 163.7070 | 163.3320 | 163.8390 |
| USD/CAD | 1.4094 | 1.4103 | 1.4071 | 1.4101 |
| EUR/JPY | 186.3570 | 186.7360 | 185.7988 | 186.4152 |
| CHF/USD | 1.2264 | 1.2288 | 1.2242 | 1.2221 |
| EUR/CHF | 0.9292 | 0.9304 | 0.9288 | 0.9303 |
| Dollar Index | 101.2350 | 101.3250 | 101.1160 | 101.2990 |
MUMBAI – The dollar index fell slightly to 101.24 Monday as demand for the safe haven currency was subdued after the US and Iran halted strikes to pave a way for further negotiations. The dollar index recorded its highest level in a week on Friday due to continued speculation on the direction of the US Federal Reserve interest rates shifted traders to buy dollars and other safe assets amid the intensifying conflict in West Asia and a new wave of US tariffs. The traders now cautiously await the two-day Fed monetary policy meeting, starting Tuesday to gauge the outlook for inflation to further determine the direction of the dollar index.
Brent crude oil fell 6% to its lowest levels in a week following the halt in attacks between the US and Iran and renewed hopes of diplomatic negotiations and de-escalation which would ease energy supply disruptions. At 1400 IST, Brent crude oil prices for September delivery were $90.38 a barrel, down from $96.78 Friday.
The euro rose 0.23% to $1.140 Monday from $1.138 Friday against the dollar on a rise in expectation of a future interest rate hike by the central bank, subsidising oil prices and dollars. The Swedish krona led the gains as it rose 0.46% to 9.671 per dollar and the Swiss franc rose 0.29% to 0.82 per dollar Monday. The European Central Bank Friday announced plans to make its new euro liquidity facility available to non-euro area central banks from the fourth quarter. Banks taking part in the facility can receive up to 50 billion euros of liquidity in the form of loans against high-quality euro-denominated collateral, priced at the main refinancing operations rate plus a spread, the central bank said.
The British sterling rose slightly to $1.34 against the dollar ahead of Bank of England's monetary policy meeting scheduled for Thursday. Investors widely expect the central bank to hold the interest rate at 3.75%, despite the recent surge in oil prices due to escalations in West Asia. The UK's inflation for June was lower than street estimates and the central bank's forecasts, dropping to a 15-month low of 2.6%.
The Japanese yen was broadly steady Monday, but hovered near 40-year low ahead of Bank of Japan's two-day monetary policy meeting on Thursday, as the Japanese Prime Minister Sanae Takaichi's fiscal policies soured market sentiment and weighed the currency down. The currency continued to hover near a 40-year low against the dollar as warnings of an intervention from government officials failed to dissuade traders from betting against the currency. The central bank is widely expected to hold rates steady at its meeting and highlight the risks of soaring inflation due to the West Asia war, the global AI stocks rally, and rising import costs from a weak yen. The yen was at 163.59 per dollar Monday, up from 163.80 Friday.
The Canadian dollar remained steady at 1.41 against the dollar Monday. (Janaki Venugopalan)
India Rupee: Premiums slump as mkt speculates RBI's fwd dlr sales, FX inflow
| AT 1340 IST | AT 0900 IST | HIGH | LOW | PREVIOUS (AT 1530 IST) | |
| Spot rupee per $1 | 95.8800 | 96.1475 | 95.7850 | 96.2725 | 96.5625 |
| 1-year dlr/rupee fwd (paise) | 268.95 | 268.24 | 276.33 | 268.24 | 281.67 |
MUMBAI – Dollar-rupee forward premiums fell sharply across tenures Monday as dealers speculated that the Reserve Bank of India sold dollars for forward delivery to neutralise its spot interventions and avert pushing out rupee liquidity, dealers said.
The one-year dollar-rupee forward premium fell as banks also sold dollars for forward delivery, likely linked to foreign fund inflows, dealers said. The one-year dollar forward premium fell to a two-week low of 2.80% or 268.24 paise on Monday.
The rupee erased losses recorded in two weeks in the spot market, owing to RBI's agressive intervention and foreign fund inflows in the market. The RBI intervented aggressively Monday, bringing the dollar-rupee down by over 30 paise during the day.
Positive sentiment prevailed in the market due to Foreign Currency Non-Resident (Bank) deposits, which exceeded market expectations by a wide range. RBI Governor Sanjay Malhotra said in an interview with the Hindu BusinessLine that recent measures to attract foreign capital had garnered a strong investor response, with banks mobilising nearly $32 billion, largely through FCNR (B) deposits.
The fall in forward premiums was limited as banks bought dollars for forward delivery on behalf of importers, who feared a further rise in crude oil prices, said dealers.
At 1330 IST, the one-year exact period dollar-rupee forward premium was 2.80%, sharply lower than Friday's close of 2.91%. On an absolute basis, the premium was 268.95 paise, against 281.67 paise Friday. (Divya Moolayattil)
India Rupee: Jumps on fall in crude, RBI intervention; FX inflows support
| AT 12.57 IST | AT 0900 IST | HIGH | LOW | PREVIOUS (AT 1530 IST) | |
| Spot rupee per $1 | 95.8450 | 96.1475 | 95.78500 | 96.27250 | 96.5625 |
MUMBAI – The rupee rose to its highest levels in two weeks as oil prices subsided and the Reserve Bank of India sold dollars through public sector banks. Foreign banks' dollar sales tied to foreign fund inflows further supported the currency.
"The strong intervention from the Reserve Bank of India on Friday has sent a clear message that the RBI will not let the rupee depreciate further," a dealer from a foreign bank said. Dealers said the RBI likely sold dollars aggressively at around 96.15 a dollar, bringing the dollar-rupee down by over 30 paise.
The pressure on the rupee has eased as heavy demand for dollars from oil importers subsided as they wait for cues on the war front. However, few dealers said there were active dollar buying by the importers, which was offset by foreign investors' dollar sales. Dealers said the foreign fund inflows were linked to a slew of initial public offerings lined up this week for Indian stock market, which helped the rupee further.
The optimism in the market over foreign currency non-resident deposits boosted support for the currency. Market participants expect the FCNR deposits to reach $80 to $85 billion by September.
The rupee in the early hours was largely range bound as traders awaited new developments on the West Asian front. "Now that the oil prices have gone down, the rupee is likely to remain steady today, unless and until there are further escalations in the Middle East," a dealer from a foreign bank said.
AT 1321 IST, Brent crude oil fell over 6% to $90.87 per barrel as Iran and the US suspended attacks after nearly two weeks of retaliations. For the rest of the day, the rupee is seen moving between 95.75 and 96.35 against the greenback. Dealers peg immediate technical resistance for the rupee at 95.75 a dollar.(Janaki Venugopalan)
India Rupee: Remains up as crude oil falls, banks sell dlrs for FX inflows
| AT 1210 IST | AT 0900 IST | HIGH | LOW | PREVIOUS (AT 1530 IST) | |
| Spot rupee per $1 | 96.1525 | 96.1475 | 96.1450 | 96.2725 | 96.5625 |
MUMBAI – The rupee remained sharply higher against the dollar, without much movement on either side from the opening level of 96.1475 per dollar. The rupee moved in a range of 17 paise so far. The rupee got a big boost from a sharp fall in crude oil prices as the US and Iran took a step back and returned to the negotiation table after two weeks of heavy strikes, dealers said.
"Crude is the main reason for the rupee's appreciation. Also, Iran said it will not attack unless initiated by the US side. We can see both sides are trying to resolve the issues," a dealer at a public sector bank said.
At 1154 IST, Brent crude for September delivery was at $90.89, sharply down from Friday's high of $101.15 a barrel. Crude oil prices had risen nearly $20 a barrel in just two weeks.
Many dealers said demand for dollars from importers was sluggish Monday, as they were in a wait-and-watch mode. "Importers are going to take a look rupee's movement before taking a stance, as news of strikes could come at anytime. The US-Iran standoff is fragile," a dealer at a private sector bank said.
However, a few other dealers said banks bought dollars actively for importers, which was squared off by banks' dollar sales likely linked to foreign fund inflows for a slew of initial public offerings lined up this week.
Nine companies will debut on D-Street and more than a dozen companies are preparing to raise more than INR 250 billion in August. Among the major firms to debut this week are Manipal Health Enterprises, Juniper Green Energy and MV Electrosystems, which together plan to raise more than INR 113.3 billion. At 1200 IST, the Nifty 50 and Sensex were up 0.8% and 0.9%, respectively.
They also said positive sentiment prevailed in the market after RBI Governor Sanjay Malhotra said in an interview with the Hindu BusinessLine that recent measures to attract foreign capital had garnered a strong investor response, with banks mobilising nearly $32 billion, largely through Foreign Currency Non-Resident (Bank) deposits, while government securities have attracted more than $7 billion in foreign inflows.
For the rest of the day, the rupee is seen moving between 96.00 and 96.30 against the greenback. Dealers peg immediate technical resistance for the rupee at 96.00 a dollar. (Divya Moolayattil)
India Rupee: Technical levels for rupee - Jul 27
MUMBAI – At 1115 IST, the rupee was at 96.2400 a dollar. At 0900 IST, the rupee was at 96.1475 a dollar, against the previous close of 96.5625. Following are the key support and resistance levels for the rupee as provided by leading banks and a brokerage:
| Participant | S2 | S1 | R1 | R2 |
| Public-sector bank | 96.55 | 96.45 | 96.05 | 95.95 |
| Public-sector bank | 96.50 | 96.30 | 96.10 | 96.00 |
| Private-sector bank | 96.50 | 96.38 | 96.00 | 95.82 |
| Foreign bank | 96.50 | 96.30 | 96.10 | 95.90 |
| Brokerage firm | 96.60 | 96.30 | 96.05 | 95.98 |
| Brokerage firm | 96.45 | 96.35 | 96.10 | 95.90 |
(Divya Moolayattil)
India Rupee - Asia FX: Most rise as oil slumps after US, Iran pause attack
MUMBAI – Most Asian currencies rose as oil prices declined following a pause in attacks between the US and Iran over the weekend. The US Pentagon late Friday said it had suspended attacks against Iran following nearly two weeks of attacks and Iran's military announced Sunday that it had also suspended its military response. The development comes as Iranian and Omani officials held talks on shipping through the Strait of Hormuz, renewing hopes of diplomatic discussions between the two countries and averting further disruption in the key oil transit route. Brent crude oil was down 3% at $93.10 per barrel at 0900 IST.
The Japanese yen rose marginally ahead of Bank of Japan's two-day monetary policy meeting starting Thursday. The currency continued to weaken against the dollar as it neared the 164 mark as warnings of an intervention from government officials failed to dissuade traders from betting against the currency. Japanese prime minister Sanae Takaichi's fiscal policy soured market sentiment and further weighed down the currency. The central bank is widely expected to hold rates steady at its meeting and highlight the risks of soaring inflation due to the West Asia war, the global AI stocks rally, and rising import costs from a weak yen. The yen was at 163.57 per dollar Monday, up from 163.79 Friday.
The South Korean won fell 0.4% to 1,466.19 per dollar from 1,459.42 Friday as the currency was weighed down by heavy foreign selling of local stocks. The Indonesian rupiah recovered slightly by 0.2% to 17,935 per dollar from 17,968 Friday following Bank Indonesia Governor Perry Warjiyo's unexpected resignation due to "personal reasons." The Thai baht led the losses among Asian currencies as it fell 0.5% to 33.53 per dollar Monday from 33.69 Friday.
The Malaysian ringgit rose marginally to 4.082 against the dollar, supported by positive domestic sentiment ahead of Negri Sembilan state election in the country. The Singapore dollar held steady at 1.291 per dollar Monday as Singapore's central bank raised the rate of appreciation of its policy band "very slightly." The Monetary Authority of Singapore, which uses the exchange rate as a main monetary tool rather than interest rates, tightened its policy to brace for expected inflationary pressures due to escalation in the West Asia war.
The Philippine peso and Taiwan dollar rose marginally to 61.71 and 32.36 per dollar, respectively, and the Chinese yuan remained steady at 6.77 per dollar Monday.
The dollar index held steady, but erased its previous gains as demand for the currency was subdued following a pause in attacks between the US and Iran. The dollar index was at 101.20 at 0900 IST Monday. (Janaki Venugopalan)
India Rupee: Rises sharply as crude oil falls after US, Iran halt strikes
| AT 0930 IST | AT 0900 IST | HIGH | LOW | PREVIOUS (AT 1530 IST) | |
| Spot rupee per $1 | 96.1750 | 96.1475 | 96.1450 | 96.1950 | 96.5625 |
MUMBAI – The rupee rose sharply as crude oil prices retreated from $100 a barrel after the US and Iran took a step back from strikes in West Asia for the second day to give space for negotiations. An Iranian spokesperson said on Sunday that Tehran had made progress in talks with Omani diplomats on management of the Strait of Hormuz and that both warring countries have exchanged messages through mediators.
Brent crude oil for September delivery was at $92.88 a barrel, down from $96.78 Friday. Brent crude oil had crossed $101 a barrel after Iranian-backed Houthis hit Saudi Arabia vessels and the war expanded from the Persian Gulf to the Red Sea.
The dollar index, which measures the strength of the US currency against six major currencies, fell slightly as market jitters calmed after the US and Iran decided to work on peace talks to end the war. At 0900 IST, the index was at 101.22, down from 101.30 Friday.
Dealers expect importers to buy dollars during the day, which is likely to put pressure on the local unit. "I don't see much buying pressure now, they may come later. Importers are probably in a wait-and-watch mode to see the direction of the rupee," the dealer said.
For the rest of the day, the rupee is seen moving between 96.00 and 96.30 against the greenback. Dealers peg immediate technical resistance for the rupee at 96.00 a dollar. (Divya Moolayattil)
India Rupee: Expected range for rupee - Jul 27
MUMBAI – Following are the support and resistance levels expected for the rupee Monday, as forecast by leading banks and brokerages in an Informist poll:
| PARTICIPANT | SUPPORT | RESISTANCE |
| Private-sector bank | 96.40 | 96.00 |
| Private-sector bank | 96.40 | 95.90 |
| Private-sector bank | 96.50 | 95.90 |
| Foreign bank | 96.50 | 96.00 |
| Foreign bank | 96.40 | 96.10 |
| Brokerage firm | 96.40 | 95.80 |
| Brokerage firm | 96.30 | 95.85 |
(Divya Moolayattil)
End
US$1 = INR 95.9100
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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