Rupee Slips to ₹86.36 as Strong Dollar and Oil Prices Weigh on India’s Currency

The Indian Rupee (INR) ended the trading session on July 22 at ₹86.3675 per U.S. dollar, down from its previous close of ₹86.2925, reflecting continued pressure from global economic uncertainties and a firming greenback.

 

The marginal decline comes amid a backdrop of strong U.S. economic data, rising crude oil prices, and uncertainty over trade negotiations between India and the United States. Analysts suggest the rupee may remain under pressure in the short term, with a trading range of ₹85.90 to ₹86.40 expected.

 

Key Drivers Behind the Dip

Market Sentiment

Experts note that the rupee’s depreciation is part of a broader trend among Asian currencies, with the dollar index recovering 1.5% in July. The Reserve Bank of India (RBI) is expected to monitor the situation closely, especially with upcoming remarks from Fed Chair Jerome Powell and ECB President Christine Lagarde.

 

Outlook

With global volatility and domestic economic signals flashing caution, traders are advised to hedge cautiously. Exporters may benefit from the current levels, while importers might wait for intra-day dips to lock in rates.

 

Sources: Fortune India, India Today, Business Standard