Indian rupee rebounds to eight-week high near 94.9 per dollar
Indian rupee strengthened to around 94.9 per dollar, its eight-week high. Move was supported by RBI FX intervention and dollar selling flows, despite pressure from higher US yields and oil prices.
The Indian rupee rose to around 94.9 per dollar, rebounding sharply to an eight-week high, as persistent Reserve Bank of India intervention and favourable near-term momentum outweighed pressure from elevated US Treasury yields and higher oil prices.
The rupee was also supported by flow-related dollar selling, while India’s GDP expanded 7.8% year-on-year in the June quarter of 2026, exceeding market expectations.
However, gains could be limited as importers are expected to increase hedging at current levels, while the RBI’s FX forward book reached a record $137 billion in July.
Meanwhile, the 10-year US Treasury yield climbed to 4.778%, its highest since January 2025, while Brent crude rose to around $91.14 a barrel as renewed US-Iran tensions heightened inflation concerns.
Traders also assessed India’s fiscal position as the fiscal deficit narrowed to INR 4.6 trillion in April-July from INR 4.7 trillion a year earlier, reaching 26.8% of the full-year target versus 29.9% previously.