Rupee Stays Near ₹96 as Weak Dollar Helps, But Crude Threatens Gains

The Indian rupee ended marginally higher against the US dollar on Friday, but its modest recovery highlighted the growing pressure on the currency from crude oil prices, geopolitical tensions and strong dollar demand.

The rupee settled at ₹95.71 per US dollar, gaining 3 paise from Thursday's close of ₹95.74. It opened at ₹95.69 and moved between an intraday high of ₹95.65 and a low of ₹95.75.

A weaker US dollar and a positive tone in domestic equities initially supported the rupee. However, continuing tensions involving the US and Iran, along with concerns over tougher sanctions, limited the currency's gains.

Market participants said RBI intervention has become an important factor supporting the rupee around the ₹96 level. The central bank's presence in the foreign exchange market has helped contain volatility even as external pressures remain elevated.

Crude oil remains a key concern for India because higher oil prices increase the country's import bill and demand for dollars. Brent crude was trading around USD 93 a barrel on Friday, adding pressure to the currency outlook.

At the same time, India's external buffers have strengthened. Forex reserves jumped USD 9.905 billion to USD 716.907 billion in the week ended August 14, providing the RBI with greater firepower to manage currency volatility.

The domestic stock market remained largely steady, with the Sensex rising 3.11 points to 77,540.83 and the Nifty gaining 20.15 points to 24,252. Foreign institutional investors, however, sold equities worth ₹542.71 crore on a net basis.

The government has also eased foreign-trade rules, allowing exporters greater flexibility to invoice overseas transactions and receive payments in Indian rupees.

For now, the rupee's direction will depend heavily on crude prices, geopolitical developments, dollar movements and RBI intervention, making the ₹96 level a closely watched mark in the currency market.