Indian Rupee Falls to 95.28 Amid Rising Oil Prices

The Indian rupee closed at 95.28 against the US dollar on August 10, 2026, marking an 11 paise decline from its previous close of 95.17. Early trade reports were contradictory, with some sources indicating a slight gain to 95.17 due to lower US Federal Reserve rate hike expectations following US job losses, while others reported an early dip to 95.25.

The currency's eventual decline was driven by a strengthening US dollar and Brent crude oil prices rising above $84 per barrel. Analysts from Geojit Investments Limited and Mirae Asset Sharekhan attributed the pressure to a widening trade deficit and uncertainty surrounding a potential deal between the United States and Iran. While Iran and Oman are reportedly close to an agreement on managing traffic through the Strait of Hormuz, Tehran maintains that a full reopening depends on the United States changing its approach to previous understandings.

To cushion the currency against geopolitical uncertainty and volatile oil prices, the Reserve Bank of India actively intervened in the foreign exchange market. The central bank also reported that India's foreign exchange reserves rose by $10.512 billion to $692.866 billion for the week ending July 31. Support for the rupee was partially provided by positive domestic equity markets and increasing Foreign Portfolio Investment inflows, though traders remain cautious ahead of upcoming US inflation data.