Now Reading: Rupee flat at 95.71 as Iran fears offset weak dollar
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Rupee flat at 95.71 as Iran fears offset weak dollar
The Indian rupee ended virtually unchanged on Friday, settling 3 paise higher at 95.71 against the US dollar as support from a weak dollar was offset by simmering geopolitical tensions, The Hindu…
The Indian rupee ended virtually unchanged on Friday, settling 3 paise higher at 95.71 against the US dollar as support from a weak dollar was offset by simmering geopolitical tensions, The Hindu reports. The currency opened at 95.69, touched a high of 95.65 and a low of 95.75 before closing flat. Traders are watching for cues from US services PMI data and crude oil prices, which remain elevated above $93 a barrel amid US-Iran tensions.
Livemint reports the rupee opened 6 paise higher at 95.64 on Monday, supported by robust capital inflows, while traders remain cautious of potential RBI intervention. India's forex reserves jumped nearly $10 billion to $716.9 billion in the week ended 14 August, their highest in six months, driven by RBI measures that have mobilised nearly $73 billion. The US is expected to announce fresh sanctions against Iran targeting its oil trade and banking network, with Treasury Secretary Scott Bessent calling it the toughest economic squeeze against an adversary.
Analysts expect the rupee to trade in a 95.60-95.80 range in the near term, but warn that the calm may precede volatility once the Iran sanctions are announced. The dollar index was trading lower at 98.65, while Brent crude eased to $93.39. Foreign institutional investors offloaded equities worth Rs 583.36 crore on a net basis on Thursday.
Indian Opinion Analysis
Both The Hindu and Livemint report the rupee's roughly flat movement against the dollar, but they frame the story around different anchors. The Hindu leads with the minute 3-paise gain and immediately attributes the limited move to geopolitical tensions, specifically US-Iran conflict. Livemint leads with a larger 6-paise opening gain and foregrounds strong capital inflows and RBI intervention as supportive factors, while still acknowledging crude oil and Iran sanctions as risks. The Hindu gives more weight to foreign investor outflows and a weak dollar, Livemint emphasises the RBI's forex reserve build-up of nearly $10 billion as a cushion. The measured takeaway: the rupee is range-bound in the 95.60-95.80 band, with the imminent Iran sanctions announcement as the key event that could break the calm. The coverage is uniform straight reporting with no discernible slant from either outlet. Watch for the US sanctions announcement expected this week, which could push the rupee towards 96.50 if crude spikes.
Coverage: 2 sources, 2 neutral
Sources (2): thehindu.com (neutral report), livemint.com (neutral report)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
