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Informist, Tuesday, Aug. 25, 2026

India Rupee: Inches up as RBI intervention offsets importers' dlr demand

MUMBAI – The rupee inched up and was range-bound, trading in a tight range of 5 paise, as public sector banks sold dollars for the Reserve Bank of India, which offset the banks' persistent dollar purchases for importers, dealers said. This has been the case for two weeks, they said.

The central bank's intervention has completely shut any room for speculators in the market, they said. Earlier in the day, the central bank also likely intervened through dollar sales in the offshore non-deliverable forwards market before the spot market opened, according to few dealers. 

The RBI's firepower to intervene in the market has risen with robust inflows into foreign currency non-resident (bank) deposits, they said. The RBI's measures to boost foreign capital inflows have attracted $72.85 billion from Jun. 8 till Friday, of which nearly 90% of inflows came from FCNR(B) deposits of $65.40 billion.

Banks actively bought dollars for importers as they wanted to meet their month-end payment obligations, which put pressure on the Indian currency, dealers said. "All the deals are genuine ones, so the volume will not be as high as before. PSUs' (public sector banks) are on bid now for importers," a dealer at a private sector bank said. 

Crude oil prices fell further Tuesday after settling down more than 2% Monday, with investors brushing off the impact of the latest US sanctions against Iran. This drop in crude oil prices sustained market sentiment and kept the rupee steady. Brent crude oil for October delivery was at $91.44 per barrel, down from $92.17 Monday. 

US Treasury Secretary Scott Bessent Monday unveiled new sanctions to cut off Iran's economic lifeline and force an end to the war, telling countries they would need to sever their business ties with Tehran or risk being cut out of the dollar-based financial system.

The dollar index reclaimed the 99 level for the first time since last Wednesday's plunge, driven by risk-off demand tied to the escalation of sanctions on Iran, which weighed on the rupee. For the rest of the day, the rupee is expected to move in the range of 95.60-95.85 per dollar. Dealers see immediate technical support for the rupee at 95.80 a dollar.  (Divya Moolayattil)

India Rupee: Steady as crude stays at $92/bbl despite US-Iran standoff

MUMBAI – The rupee was broadly steady against the dollar Tuesday as crude oil prices remanied firm at $92 per barrel even after US imposed sanctions on Iran and its allies, which is likely to further delay diplomatic resolution of the war. At 0900 IST, Brent crude oil for October delivery was $92.46 per barrel, against $92.17 Monday. 

"It is crude that matters now, dollar index doesn't matter. If crude moves, the rupee will also move. Right now, crude has strong support at current levels," a dealer at a private sector bank said. 

Treasury Secretary Scott Bessent Monday announced plans to isolate Iran by targeting countries through sanctions that continue doing business with the Islamic Republic, while President Donald Trump said those nations would be given a specific timeline to sever ties with Tehran or face unilateral US penalties.    

Few dealers said banks are likely to sell dollars, linked to foreign fund inflows of around $750 million, which will support the rupee. Foreign portfolio investors became net buyers in domestic equities, as they bought around INR 11.82 billion shares Monday. 

Dealers expect importers to buy dollars actively for month-end payments as the day progresses, which will weigh on the rupee. For the rest of the day, the rupee is expected to move in the range of 95.60-95.85 per dollar. Dealers see immediate technical support for the rupee at 95.80 a dollar. (Divya Moolayattil)

India Rupee: Expected range for rupee - Aug 25

MUMBAI – Following are the support and resistance levels expected for the rupee Tuesday, as forecast by leading banks and brokerages in an Informist poll: 

(Divya Moolayattil)

India Rupee - Asia FX: Most fall as dollar firms up on safe-haven demand

MUMBAI – Most Asian currencies fell against the dollar in early trade as the dollar index rose overnight and stayed near 99 on safe-haven demand. At 0830 IST, the dollar index was 99.00, up from 98.98 Monday. 

Market remained cautious after the US imposed sanctions on Iran and its allies. Treasury Secretary Scott Bessent Monday announced plans to isolate Iran by targeting countries through sanctions that continue doing business with the Islamic Republic, while President Donald Trump said those nations would be given a specific timeline to sever ties with Tehran or face unilateral US penalties.    

The Japanese yen fell slightly to 159.31 per dollar, down from 159.07 Monday as the greenback gained safe-haven demand. The Bank of Japan will probably raise its benchmark interest rate next month, validating widespread market speculation, and follow up with another increase as early as January, according to former board member Seiji Adachi. Traders are betting on an 80% probability of a hike with BoJ's next policy decision scheduled for Sept. 18.

The South Korean won rose marginally, extending gains to its strongest level since September 2025, as strong domestic fundamentals supported the currency. South Korea's exports jumped 56% year-on-year in the first 20 days of August, while semiconductor shipments nearly tripled to $26 billion, generating a $14 billion trade surplus and supporting exporters' dollar-selling.

The Philippine peso and Thai baht were broadly steady at 61.69 and 32.72 per dollar, respectively. The Taiwan dollar fell marginally to 31.86 per dollar. The Singapore dollar was broadly steady as inflation missed estimates even as it accelerated to a near two-year high in July, as higher energy prices lifted electricity prices. The country reported that consumer prices in July rose 2.2% year on year, compared with the 2.3% expected by economists polled by Reuters, and the 1.9% rise seen in June.

The Chinese yuan also fell 0.2% to 6.72 per dollar Tuesday. Media reports that the US was considering a 7.5% tariff on Chinese goods may add some uncertainty to yuan Tuesday.  (Divya Moolayattil) 

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Shubhayan Bhattacharya

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