05.08.202604:04:39UTC+00Rupee Rises to Four-Week High

The Indian rupee strengthened to around 95 per dollar, hitting a four-week high after stabilizing in the previous session, as a sharp drop in crude oil prices lifted sentiment amid signs of progress in US-Iran talks. The currency also drew support from the Reserve Bank of India’s ongoing market interventions and strong capital inflows tied to measures announced in June. Brent crude extended its pullback from a recent peak of about $102 per barrel to $78.80, following a 5.2% slide on Tuesday, easing pressure on India’s oil import bill. At the same time, investors awaited the RBI’s policy decision, with economists broadly expecting the central bank to keep interest rates on hold, as reduced uncertainty around growth, inflation, the West Asia conflict, and the monsoon outlook limited the scope for policy surprises. Over the last four weeks, the USD/INR pair has fallen 0.36%, though it remains 8.31% higher than a year earlier.