Now Reading: Rupee closes 3 paise up at 95.33 on fading Strait of Hormuz hopes
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Rupee closes 3 paise up at 95.33 on fading Strait of Hormuz hopes
Rupee closes 3 paise up at 95.33 on fading Strait of Hormuz hopes
The rupee gained 3 paise to close at 95.33 against the U.S. dollar on Wednesday (August 12, 2026), as a sharp rise in Brent crude towards $90 a barrel overshadowed fading expectations…
The Story in Brief
The rupee gained 3 paise to close at 95.33 against the U.S. dollar on Wednesday (August 12, 2026), as a sharp rise in Brent crude towards $90 a barrel overshadowed fading expectations of a quick U.S.-Iran agreement and reopening of the Strait of Hormuz. The domestic unit opened at 95.40 and swung between 95.24 and 95.43 during the session, according to exchange data.
Traders now await the U.S. CPI print later this week. A hotter reading could strengthen expectations of a September Federal Reserve rate hike, pushing yields and the dollar higher, CR Forex Advisors MD Amit Pabari told The Hindu. On the domestic front, the Sensex fell 187.90 points to 77,966.35, while FIIs bought equities worth Rs 258.55 crore on a net basis on Tuesday. Fitch Ratings retained India's 'BBB-' rating for the 20th year, citing strong growth but flagging fiscal risks from youth protests over jobs.
The Indian Opinion
The rupee's mini bounce is being painted as a sign of resilience, but the real story is oil at $90 and the fading Iran deal. The predictable narrative of 'RBI intervention saves the day' papers over a basic fact: the rupee has lost roughly 7% this year, and crude above $90 will test the central bank's appetite. Watch for 95.50 and then 95.80, those levels will tell us whether the RBI is merely smoothing or truly defending a line.
Sources (5): thehindu.com, thehindu.com (2), thehindu.com (3), thehindu.com (4), thehindubusinessline.com
This story was synthesised by AI from the 5 sources linked above.
Updated: this story now draws on 5 sources.
