Indian Rupee Recovers to 96.37 Against US Dollar Amid Easing Geopolitical Tensions
Rupee recovers 49 paise from all-time low to settle at 96.37 against US dollar
Image: Deccan Herald
The Indian rupee rebounded by 49 paise to settle at 96.37 against the US dollar following a decline in crude oil prices and signs of easing geopolitical tensions. This recovery comes after the rupee hit a record low of 96.95 earlier in the week, reflecting ongoing market volatility influenced by geopolitical risks and central bank interventions.
- 01The rupee opened at 96.25 and reached a high of 96.05 and a low of 96.60 during intraday trading.
- 02The dollar index was at 99.30, reflecting a 0.22% increase against a basket of currencies.
- 03Dilip Parmar from HDFC Securities noted that the rupee's recovery is tied to falling crude oil prices and central bank actions.
- 04The rupee has depreciated over 6% in CY26 against the dollar, reaching successive record lows.
- 05DBS Bank has adjusted its USD/INR forecast to a range of 95-100 for the remainder of 2026.
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On Thursday, the Indian rupee recovered 49 paise to settle at 96.37 against the US dollar, bouncing back from a record low of 96.95 earlier in the week. This rebound was attributed to a decrease in crude oil prices and the easing of geopolitical tensions, alongside possible interventions by the Reserve Bank of India (RBI). Forex traders noted that while the rupee showed signs of recovery, investors remain cautious due to ongoing geopolitical risks and their impact on oil prices. The rupee opened at 96.25, hitting a high of 96.05 and a low of 96.60 during the trading session. The dollar index, which measures the dollar's strength against a basket of currencies, was reported at 99.30, up 0.22%. Analysts from DBS Bank indicated that the rupee has depreciated over 6% this year, prompting them to revise their USD/INR forecast to a range of 95-100 for the rest of 2026. The domestic equity market also faced challenges, with the Sensex dropping 135.03 points to close at 75,183.36.
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The rupee's recovery could stabilize import costs for oil and reduce inflationary pressures, benefiting consumers and businesses reliant on imported goods.
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