Rupee ends at 95.68 as Reserve Bank of India intervenes
The rupee stayed almost unchanged on Thursday, closing at 95.68 per US dollar.
Despite pressure from elevated and volatile oil prices and strong demand for dollars by big companies, the Reserve Bank of India (RBI) stepped in to keep things stable.
State-run banks sold dollars near the low of 95.75, likely stopping the rupee from crossing the important 96 mark.
Brent rebounds, US dollar index firm
Brent crude oil bounced between $89 and $93 as renewed attacks between the US and Iran sparked worries about shipping disruptions, something India feels deeply since it imports most of its oil.
Meanwhile, the US dollar index held firm at 100.8 thanks to ongoing geopolitical events and hints from the US Federal Reserve about tighter policies.
Importers buy dollars, RBI cushions rupee
Traders say importers are buying more US dollars lately, expecting that the rupee might get weaker soon. This adds extra strain on India's currency.
The RBI's actions have helped prevent a bigger drop, but with oil prices swinging wildly and a strong US dollar, challenges could stick around for a while.