RUPEE IN FOCUS
The Indian currency opened at 95.51 per US dollar, compared with Thursday’s (August 27) close of 95.54. The week started on a positive note for the currency, as on Monday, the rupee had opened at 95.64 against the US dollar.
In addition, the 10-year bond yield remained at 6.94%.
The rupee is still encountering difficulties due to the continuous hedging demand from domestic corporations and the irregular maturity of derivative contracts, further exacerbated by consistently elevated oil prices.
FACTORS AT PLAY TODAY
A Reuters report said that the ongoing competition between stable dollar demand from importers and continuous support from the central bank is expected to keep the currency stable around 95.50 per US dollar, particularly in light of the Federal Reserve chief’s highly anticipated speech.
Traders predict that the rupee will open within the 95.50-95.55 range, following its settlement at 95.54 to the dollar on Thursday.
Throughout this week, the currency has fluctuated between 95.40 and 95.75, largely mirroring the range-bound behaviour observed in the previous week.
Currently, the rupee seems to have established a “temporary equilibrium,” according to a currency trader at a bank, the report added.Interbank traders are increasingly viewing the dollar/rupee exchange rate as operating within a wider band of 95.00-96.00, with neither side presenting a strong incentive to initiate a breakout, he noted.
Meanwhile, crude oil saw its prices rise, as the price of the benchmark, Brent Crude, remained around the $90 mark as US-Iran discussions see no visible progress.
Furthermore, another critical factor placating the currency is gold. The precious metal, after making gains over the recent past, has managed to hold the gains in today’s session so far. The metal remains around the $4,600 mark.
(Edited by : Juviraj Anchil)
First Published: Aug 28, 2026 9:05 AM IST
