Rupee Rallies Past 86/USD as Oil Slumps—INR Logs Best Day in Weeks

The Indian Rupee surged 0.9% intraday, strengthening beyond the 86.00 mark against the US Dollar, buoyed by a sharp drop in global crude oil prices and a softer dollar index. After closing at 86.75 in the previous session, the INR opened stronger and touched 85.97, marking its best single-day performance in over two weeks.

 

Analysts attribute the rebound to a 2% decline in WTI crude futures, easing India’s import bill and inflationary pressures. Additionally, foreign portfolio inflows and expectations of a US Fed rate cut in September have improved risk appetite for emerging market currencies.

 

The Reserve Bank of India’s (RBI) intervention near 86.20 levels earlier this week also helped anchor sentiment, while India’s May trade deficit narrowed to $21.88 billion, offering further support.

 

Key Highlights:

Sources: MSN – INR Recovery on Oil Slide | FXStreet – INR Firms on Trade Data | Economic Times – RBI Intervention