Rupee closed nearly
flat on Thursday as pressure from sustained volatility in oil
prices and corporate dollar demand was blunted by likely central
bank intervention that helped the currency hold clear of the
psychologically key 96 level.
The rupee closed at 95.68 per U.S. dollar, little changed from 95.6475 in the previous session.
Brent crude oil futures swung between gains and losses in a
$93-$89 range on Thursday as renewed attacks between the United
States and Iran spurred fresh concerns about oil flows through
key shipping routes.
State-run banks, meanwhile, were spotted selling dollars
near the day’s low for the rupee around 95.75. Elevated oil
price volatility has also contributed to a pickup in importer
hedging, traders said, which has weighed on the rupee in recent
sessions.
India imports nearly 90% of its crude requirements, making
it one of the world’s most vulnerable economies to the Middle
East oil shock.
The rupee had declined past 96 per dollar and appeared
vulnerable to breaching its record low of 96.96 last week,
before the central bank stepped in to shore up the currency.
“While recent rupee strength has been aided by RBI
intervention, the broader backdrop of elevated crude oil prices,
persistent geopolitical tensions, and a Fed that continues to
keep the door open for further tightening remains supportive for
the dollar,” said Amit Pabari, managing director at FX advisory
firm CR Forex.
The 30-year Treasury bond yield hit a 19-year
high of 5.239% on Thursday, a day after the Federal Reserve kept
interest rates on hold, but Chair Kevin Warsh offered mixed
messages on the outlook for monetary policy and inflation.
The dollar index was steady at 100.8 while most Asian
currencies slipped.
Published on July 30, 2026
