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Rupee rises 41 paise to 96.15 as oil prices ease

The rupee gained on weaker Brent crude after the US paused military strikes on Iran, while RBI measures to attract foreign inflows also supported the currency.

Reported · Written up by our desk · Major Pairs

The Indian rupee opened 41 paise higher at 96.15 against the US dollar on Monday, July 27, helped by a sharp decline in crude oil prices. The move followed a Reuters report that US President Donald Trump paused military strikes on Iran after nearly two weeks of hostilities.

Brent crude for September delivery fell nearly 4% to $93.02 per barrel after the US and Iran halted further strikes, raising hopes of a diplomatic breakthrough and easing concerns about supply disruptions. With India dependent on imported crude, lower oil prices were expected to reduce the import bill and help ease pressure on the trade deficit and inflation, according to the article.

The report also cited expected foreign capital inflows tied to recent measures announced by the Reserve Bank of India to attract overseas investment. It noted the rupee had come close to breaking the 97 per dollar level on Friday, a record low, before recovering.

Still, experts warned that geopolitical risks remain elevated despite the pause in hostilities. The article pointed to claims by Iran and Ukraine that each side had been involved in attacks in other theaters, while it also said the US dollar stayed firm as stronger-than-expected services activity was offsetting softer manufacturing data and inflation pressures remained a concern.

Latest closeWTI crude $90.47 ▼1.9%|Brent $98.38 ▼2.3%

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