The Indian rupee is poised for a
quiet start to the week, buoyed by robust capital inflows, while
traders keep an eye on oil prices and anticipated interventions
by the central bank to keep the currency on a steady footing.
The rupee is expected to open in the 95.65-95.70 range,
per traders, having settled at 95.6950 to the dollar on Friday.
Oil prices slipped on Monday as investors awaited an expected
announcement from Washington about imposing more sanctions on
Iran that may further disrupt energy supplies from the Middle
East.
US President Donald Trump has also threatened to impose
sanctions on Iran’s trading partners.
Uncertainty over the conflict could keep risk appetite curtailed
but pressure on the rupee is expected to be offset by the
Reserve Bank of India’s presence in the market, similar to the
last two weeks.
Over the weekend, the central bank said it has garnered nearly
$73 billion under measures rolled out in June to strengthen
India’s balance of payments, helping lift FX reservesjust shy of
a record high.
“We expect the RBI to use inflows to reduce its FX forward
book and/or rebuild FX reserves, rather than allow a material
appreciation of the currency,” analysts at Goldman Sachs said in
a note.
The firm has revised its three-, six- and 12-month rupee
forecasts weaker to 96,97,97 from 94,95,96, respectively, after
the RBI brought forward the closure of the discounted hedging
facility for overseas deposits by a month.
Elsewhere, Asian currencies and stocks were mostly rangebound,
with investors awaiting results from chip major Nvidia
later this week followed by a key speech from Federal Reserve
Chair Kevin Warsh on Friday.
Published on August 24, 2026
