Indian Rupee Gains Against Dollar Amid US Treasury Buybacks

The Indian rupee gained 9 paise to reach 95.65 against the US dollar in early trade on Friday, August 21, 2026. This appreciation followed a volatile Thursday session where reports on the closing price conflicted, with some sources citing a settlement of 95.70 and others reporting 95.74.

The currency's gains were driven by a weakening US dollar index, influenced in part by the United States Department of the Treasury doubling its buyback operations for longer-dated Treasury bonds. However, the rupee's strength remained tempered by Brent crude oil prices staying above $93 per barrel, a result of Middle East geopolitical tensions and warnings from US President Donald Trump toward supporters of Iran.

Reserve Bank of India Governor Sanjay Malhotra stated the central bank expects at least $80 billion in foreign currency inflows, with $56.85 billion already mobilized through measures such as FCNR(B) deposits. Despite these efforts, traders observed that the rupee has not experienced meaningful appreciation since the Reserve Bank of India first announced these inflow measures in June.