The Indian rupee opened three paise lower at Rs 95.44 against the US dollar on August 27, compared with Rs 95.41 in the previous trading session. Currency and debt markets were closed on August 26 due to a public holiday. Market participants are closely watching the Reserve Bank of India\u2019s (RBI) intervention in the foreign exchange market as the rupee remains near historically weak levels against the dollar.<\/p>\n\n\n\n
According to market participants, the RBI has been active in the foreign exchange market over the past two weeks, selling dollars to limit further depreciation of the rupee.<\/p>\n\n\n\n
The central bank\u2019s intervention is aimed at preventing the rupee from weakening beyond the Rs 96 per dollar level. RBI intervention in the foreign exchange market typically involves buying or selling dollars to manage excessive volatility and maintain orderly market conditions.<\/p>\n\n\n\n
Importers and oil marketing companies have also been using the current exchange-rate levels to hedge their dollar exposure, adding to activity in the currency market.<\/p>\n\n\n\n
A decline in global crude oil prices has provided some support to the rupee. Brent crude was trading near $87 a barrel amid expectations that talks between Iran and Oman could potentially lead to the reopening of the Strait of Hormuz.<\/p>\n\n\n\n
The Strait of Hormuz is a major global energy route, through which a significant volume of oil passes. Any improvement in the situation around the route could ease concerns over energy supplies and limit pressure on crude prices.<\/p>\n\n\n\n
For India, lower crude prices can be positive for the rupee because the country imports a large share of its crude oil requirements. Cheaper oil can reduce the amount of dollars required to pay for imports, potentially easing demand for the US currency.<\/p>\n\n\n\n
Despite the support from lower crude prices and RBI intervention, analysts continue to see depreciation pressure on the rupee.<\/p>\n\n\n\n
Amit Pabari, managing director at CR Forex Advisors, said the Rs 95.15-Rs 95.20 range could act as an important support zone for the USD\/INR pair.<\/p>\n\n\n\n
However, he expects the broader trend to remain tilted towards rupee depreciation, with USD\/INR potentially moving towards the Rs 96.20-Rs 96.50 range over the coming weeks.<\/p>\n\n\n\n
The rupee\u2019s movement in the near term is likely to depend on RBI intervention, corporate dollar demand, crude oil prices and developments in global currency markets.<\/p>\n\n\n\n
Source: Moneycontrol<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" The Indian rupee opened three paise lower at Rs 95.44 against the US dollar on August 27, compared with Rs 95.41 in the previous trading session. Currency and debt markets were closed on August 26 due to a public holiday. Market participants are closely watching the Reserve Bank of India\u2019s (RBI) intervention in the foreign […]<\/p>\n","protected":false},"author":6,"featured_media":409,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/posts\/401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/comments?post=401"}],"version-history":[{"count":2,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/posts\/401\/revisions"}],"predecessor-version":[{"id":410,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/posts\/401\/revisions\/410"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/media\/409"}],"wp:attachment":[{"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/media?parent=401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/categories?post=401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thesimplehaishow.com\/thesimplehaishow\/wp-json\/wp\/v2\/tags?post=401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}