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Informist, Thursday, Aug. 6, 2026

 

By Divya Moolayattil

 

MUMBAI – The rupee fell slightly against the dollar as importers bought the greenback, dealers said. However, the fall in the rupee was limited as the price of Brent crude oil remained below $80 per barrel for the second day and the Reserve Bank of India sold dollars, they said. Dollar inflows from foreign currency non-resident (banks) deposits kept market sentiment up.

"As global markets are tepid and small today, so rupee was impacted by flows," a dealer at a private-sector bank said. "Importers were coming just for daily requirements. The RBI was also there, but selling magnitude was smaller."

 

The rupee settled at 95.2200 a dollar Thursday, lower than its previous close of 95.1175 per dollar. The rupee moved in a narrow range of 12 paise during the day. Other Asian currencies were mixed, with the Malayasian ringgit emerging as the best performer and South Korean won being the worst.

 

The rupee was broadly steady against the dollar as crude oil prices remained near $80 per barrel for the second day and there were no major developments in the negotiations between the US and Iran, dealers said. However, Iran's foreign ministry spokesperson said Oman and Iran were close to reaching a final deal on an acceptable route for ships to pass through the Strait of Hormuz. At 1530 IST, Brent crude oil for October delivery was priced at $80.29 per barrel against $79.45 Wednesday. But Brent crude was far from July's high of $102 per barrel.

 

However, banks bought dollars during the day on behalf of importers, noting lower crude oil prices and lower dollar-rupee levels, which weighed on the Indian unit, dealers said. "There wasn't much liquidity in the market today, so even a small deal moved the market," the dealer said. But the RBI sold dollars, preventing the Indian unit from falling below 95.24 a dollar. The support from the central bank was "very mild", dealers said. The RBI has been continuously supporting the rupee for over a week, shielding it from global tensions and dollar demand.

 

Market sentiment remained supported by higher-than-expected inflows into Foreign Currency Non-Resident (Banks) deposits. Inflows into FCNR(B) deposits, overseas foreign currency borrowings by banks, and external commercial borrowings by public-sector undertakings stood at $40.82 billion from Jun. 8 to Jul. 31. Of these total inflows, the major portion was from FCNR(B) deposits at $36.73 billion.

 

	AT 1530 IST	AT 0900 IST	HIGH	LOW	PREVIOUS (AT 1530 IST)
Spot rupee per $1	95.2200	95.1300	95.1175	95.2400	95.1175
1-year dlr/rupee fwd (paise)	262.06	266.47	267.43	261.78	266.50

 

FORWARDS

Dollar-rupee forward premiums fell across tenors for the fourth consecutive day, likely owing to inflows into the RBI's Foreign Currency Non-Resident (Banks) scheme. The RBI had introduced a concessional swap facility from Jun. 8 for fresh FCNR(B) deposits. Under the swap window, the RBI will cover the entire hedging cost of banks' fresh three- to five-year FCNR(B) deposits raised until Sept. 30.

 

Banks also bought forward dollars on behalf of importers, noting a sharp fall in crude oil prices, which limited the fall in forward premiums, dealers said. At 1530 IST, the one-year exact-period dollar-rupee forward premium was at 2.75%, down from Wednesday's close of 2.79%. On an absolute basis, the premium was 262.06 paise, against 266.50 paise Wednesday. 

 

OUTLOOK

Friday, the rupee is likely to track the movement in crude oil price amid developments in West Asia, dealers said. Market participants will track potential foreign fund inflows from the measures announced by the RBI and the government in June to attract foreign capital, they said. Traders expect the dollar inflows from these measures to maintain the positive sentiment in the market.

 

The domestic currency will also continue to take cues from movement in the dollar index, they said. "Market participants are now focused on the US Non-Farm Payrolls report, which is expected to be the key driver for the Dollar and global currencies. A stronger-than-expected jobs report could support the Dollar further and keep pressure on the Rupee, while a weaker reading may provide temporary relief," Jateen Trivedi, vice-president and research analyst, commodity and currency, LKP Securities, said in a note.

 

Dealers expect importers to continue buying dollars, which will weigh on the rupee. The RBI is likely to intervene if the rupee comes under extreme pressure. Dealers see strong technical resistance for the Indian currency at 94.90 per dollar. The rupee is likely to move in a range of 95.00–95.35 against the dollar Friday.

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India Rupee - World FX: Dlr rises slightly as markets await Iran-Oman deal

 

	AT 1452 IST	HIGH	LOW	PREVIOUS
GBP/USD	1.3465	1.3473	1.3455	1.3463
EUR/USD	1.1543	1.1560	1.1539	1.1551
NZD/USD	0.5880	0.5896	0.5870	0.5883
AUD/USD	0.7043	0.7060	0.7036	0.7051
USD/JPY	157.8330	157.8950	157.5610	157.7020
USD/CAD	1.4008	1.4018	1.4003	1.4009
EUR/JPY	182.1880	182.3360	182.0960	182.1200
CHF/USD	1.2366	1.2407	1.2362	1.2377
EUR/CHF	0.9334	0.9338	0.9316	0.9325
Dollar Index	99.7520	99.7840	99.6370	99.6900

 

MUMBAI – The dollar index rose slightly above its lowest level in seven weeks Thursday as investors awaited new developments in the negotiations to resolve the war in West Asia and reopen the Strait of Hormuz. Crude oil prices remained below $80 per barrel, weighing down the currency as fears of inflation subsided and curbed demand for the safe-haven unit. Pressure on the dollar index from the Japanese yen eased after coordinated intervention by the US and Japan, as the yen fell slightly Thursday. The Japanese yen has a 13.5% weight in the dollar index. Investors now await US payroll data scheduled to be released Friday to gauge the Federal Reserve's interest rate path.

 

The Japanese yen erased some of its gains following the joint intervention, but remained well above its 40-year lows. Investors remained concerned over Prime Minister Sanae Takaichi's fiscal policies, which soured market sentiment for the yen and Japanese bonds. Japan's ruling Liberal Democratic Party Wednesday approved a plan to temporarily cut the sales tax on food items for two years, despite concerns over how the government will fund the revenue shortfall, which is estimated to be around $31.71 billion annually.

 

The Australian dollar fell marginally to 1.4199 per dollar Thursday from 1.4168 as investors awaited the Reserve Bank of Australia's monetary policy meeting on Monday. The central bank is widely expected to keep the interest rate unchanged.

 

The euro fell slightly, while the British sterling remained steady against the dollar.  (Janaki Venugopalan)

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India Rupee: Premiums fall on FX inflows; importers' demand limit fall

 

	AT 1400 IST	AT 0900 IST	HIGH	LOW	PREVIOUS(AT 1530 IST)
Spot rupee per $1	95.2100	95.1300	95.1075	95.2400	95.1175
1-year dlr/rupee fwd (paise)	262.24	266.47	267.43	261.78	266.50

 

MUMBAI – Dollar-rupee forward premiums fell across tenors for the fourth consecutive day likely owing to inflows into the RBI's Foreign Currency Non-resident (bank) scheme. The RBI had introduced a concessional swap facility from Jun. 8 for fresh FCNR(B) deposits. Under the swap window, the RBI will cover the entire hedging cost of banks' fresh three-to-five year FCNR (B) deposits raised until Sept. 30. 

 

Banks have attracted FCNR (B) deposits of $36.73 billion from Jun. 8 to Jul. 31. RBI Governor Sanjay Malhotra said he expected robust inflows to come in the scheme. Dealers have increased their estimates of inflows to $80 billion from $43 billion previously as per Informist poll. 

 

"The RBI's forward book has come down now. It was previously at $120 billion to $125 billion, now it has gone down to 100 billion. So, RBI has reduced their forward short position and are rolling over the inflows coming from 3 year and 4 year FCNR deposits," a dealer from a foreign bank said.

 

Banks also bought forward dollars on behalf of importers, noting a sharp fall in crude oil prices, which limited the fall in forward premiums, dealers said. "There is market pressure in the near term as traders are more active in the first few months and, on the far end, the market is the same and the liquidity is lower," a dealer from a brokerage firm said. 

At 1356 IST, the one-year exact period dollar-rupee forward premium was down 2.76%, down from Wednesday's close of 2.79%. On an absolute basis, the premium was 262.24 paise, against 266.50 paise Wednesday.  (Divya Moolayattil & Janaki venugopalan)

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India Rupee: Falls slightly on importers' dlr purchase; lower crude supports

 

	AT 1322 IST	AT 0900 IST	HIGH	LOW	PREVIOUS (AT 1530 IST)
Spot rupee per $1	95.2150	95.1300	95.1175	95.1700	95.1175

 

MUMBAI – The rupee fell slightly against the dollar Thursday as importers' demand for dollars weighed the currency down. Dealers said due to the thin liquidity in the market, even a small quantum of dollar bids were moving the market. "Little inflow is there in the market, but largely there is not much liquidity in the market," a dealer from a foreign bank said. "Importers demand is always there, oil companies will keep buying as the oil prices goes down." Importers' bought greenback at every dollar-rupee dip as oil prices held at $80 per dollar on renewed hope of the reopening of the Strait of Hormuz.

 

"Right now IPO flows are just getting absorbed in the market. Last Friday, the RBI sold $7 billion just to offset the importer demand in the market," a dealer from a foreign bank said. Banks also sold dollars for foreign investors, likely linked to initial public offerings lined up for August.

 

The dollar index rose slightly but hovered near a seven-week low against major currencies as renewed hopes of a US-Iran peace deal curbed the demand for the safe-haven unit, which eased the pressure on broader Asian currencies, including the rupee. Lower crude oil prices have also helped support the Indian currency. Dealers expect the rupee to be around the same range throughout the day. "The market is very lacklustre today, it is just moving 20 paisa up or down. It will be around the same level today," a dealer from a foreign bank said. At 1321 IST, dollar index was 99.76, slighlty up from 99.96 Wednesday.

 

For the rest of the day, the rupee is seen moving between 95.00 and 95.35 against the greenback. Dealers peg immediate technical resistance for the rupee at 95.00 a dollar.  (Janaki Venugopalan)

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India Rupee: Technical levels for rupee - Aug 6

 

MUMBAI – At 1214 IST, the rupee was at 95.2200 a dollar. At 0900 IST, the rupee was at 95.1300 a dollar, against the previous close of 95.1175. 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	95.45	95.35	95.10	94.90
Private-sector bank	95.45	95.30	95.00	94.90
Private-sector bank	95.45	95.35	95.05	94.85
Foreign bank	95.55	95.25	94.95	94.85
Brokerage firm	95.40	95.25	95.00	94.90

 

(Divya Moolayattil)

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India Rupee: Steady on lack of global cues; importers' dlr buys may weigh

 

	AT 0930 IST	AT 0900 IST	HIGH	LOW	PREVIOUS (AT 1530 IST)
Spot rupee per $1	95.1325	95.1300	95.1175	95.1700	95.1175

 

MUMBAI – The rupee was broadly steady against the dollar as crude oil prices remained near $80 per barrel for the second consecutive day and there were no major developments in negotiations between the US and Iran, dealers said. However, Iran's foreign ministry spokesperson said Oman and Iran were close to reaching a final deal on an acceptable route for ships to pass through the Strait of Hormuz. 

 

Brent crude oil for October delivery was $79.35 per barrel against $79.45 Wednesday. However, Brent crude was far from last week's high of $100 per barrel. "There are no cues, or no news on West Asia, so the rupee's movement will be flow dependent," a dealer at a private sector bank said. "I think we will see selling (dollars) today, as that has been in trend for some days. The rupee appreciation is expected."   

 

Banks may sell dollars on behalf of foreign investors, likely linked to a slew of Initial Public Offerings lined up in August. Dealers also expect importers to buy dollars, noting the sharp fall in crude oil prices, which may weigh on the Indian unit. 

 

For the rest of the day, the rupee is seen moving between 95.00 and 95.25 against the greenback. Dealers peg immediate technical resistance for the rupee at 95.00 a dollar.  (Divya Moolayattil)

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India Rupee: Expected range for rupee - Aug 6

 

MUMBAI – Following are the support and resistance levels expected for the rupee Thursday, as forecast by leading banks and brokerages in an Informist poll: 

 

PARTICIPANT	SUPPORT	RESISTANCE
Public-sector bank	95.35	94.90
Private-sector bank	95.30	94.80
Private-sector bank	95.35	94.85
Private-sector bank	95.35	94.90
Private-sector bank	95.30	94.90
Brokerage firm	95.30	94.80
Brokerage firm	95.35	94.85

 

 

 

 

 

 

 

 

 

 

 

(Divya Moolayattil)

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India Rupee - Asia FX: All rise on hope of diplomatic resolution in W Asia

 

MUMBAI – All Asian currencies rose Thursday as oil prices held steady at their lowest level this week, subsiding fears of inflation. Iran said it had reached an agreement with Oman on a proposed route for shipping through the Strait of Hormuz and ‌a joint announcement is being finalised, renewing hopes of reopening of the strait. At 0838 IST, Brent crude oil for October delivery was at $79.83 a barrel against $79.45 Tuesday.

 

The South Korean won led the gains among the Asian peers as it rose for the second consecutive day as the country's current account surplushit an all-time monthly high. The current account surplus rose to $49.7 billion in June from $38.6 billion a month earlier, Bank of Korea data showed Thursday. South Korea's current-account surplus widened to a record for a second straight month driven by a surge in semiconductor exports. The won rose marginally to 1418.18 per dollar Thursday from 1421.87 Wednesday.

 

The Taiwan dollar followed the won in gains and rose for the third consecutive day as foreign inflows through Taiwan Semiconductor stocks supported the currency. The Taiwan dollar was at 32.20 per dollar, up from 32.26 Wednesday. The Philippine peso rose slightly to 60.61 per dollar Thursday from 60.70 Wednesday.

 

The Japanese yen held steady at 157.67 per dollar following the joint yen-buying intervention from the US and Japan. Moving away from the trend, the Chinese Yuan fell slightly to 6.75 per dollar Thursday.  (Janaki Venugopalan)

 

End

 

US$1 = INR 95.2200

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Rajeev Pai

 

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