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Rupee firms as traders expect continued RBI dollar sales

USD/INR slipped to around 95.67 after a three week high near 95.85, while crude oil futures rose and kept pressure on the currency.

Reported · Written up by our desk · Major Pairs

The Indian rupee edged higher against the US dollar on Tuesday, with USD/INR trading near 95.67 after refreshing a three week high around 95.85 in the opening session, according to FXStreet.

FXStreet reports that Reuters said the Reserve Bank of India likely intervened in the foreign exchange market for an eighth consecutive session, with state run banks offering dollars, as elevated oil prices continued to weigh on the South Asian currency.

In early trading, the MCX Crude Oil contract expiring August 19 rose 1.1% to about Rs. 8,150, its highest level in two weeks, a move that tends to undermine currencies in oil importing economies like India.

FXStreet also noted that market participants are looking ahead to the release of the Federal Open Market Committee minutes from the July policy meeting on Wednesday for fresh cues on US inflation and the outlook, with expectations for US interest rate signals limited by Fed Chairman Kevin Warsh’s stance on no forward guidance.

Latest closeWTI crude $82.40 ▲1.4%

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