Indian rupee slips 0.2% to ₹95.4250 after RBI sells dollars
The Indian rupee slipped 0.2% against the US dollar this week, ending Friday at ₹95.4250 to the dollar.
To keep things from getting worse, the Reserve Bank of India (RBI) jumped in with frequent dollar sales through state-run banks, keeping the rupee's movement pretty tight, even as importers rushed for dollars and oil prices stayed jumpy.
US blockade threat boosts oil prices
Geopolitical worries in West Asia pushed oil prices higher after the US threatened a naval blockade of Iran, sparking fears about supply disruptions.
Since India imports 90% of its crude oil, these price spikes hit hard and make things trickier for the rupee.
Consumer inflation 4.45% above RBI target
India's wholesale inflation eased a bit to 9.78% in July, but consumer inflation rose to 4.45%, just above the RBI's target.
Economists at Barclays expect interest rates won't change for the rest of 2026, though 50 basis points of hikes are expected in the first half of 2027.