Rupee rises 17 paise to 95.56 against U.S. dollar in early trade
The Indian rupee appreciated against the U.S. dollar following the U.S. Treasury's decision to increase bond buyback operations. Despite the currency's gain, analysts warn that elevated global oil prices continue to exert pressure on India's import costs.
Why it matters
Currency fluctuations and oil prices are key indicators of India's economic health and impact domestic inflation and trade balances.
The rupee appreciated 17 paise to 95.56 against the American currency in early trade on Thursday (August 20, 2026) tracking a weak U.S. dollar, after the U.S. Treasury announced that it would double its buyback operations for longer-dated Treasury bonds.
Forex traders said the dollar index fell to its lowest level since late May after the U.S. Treasury announced that it would double its buyback operations for longer-dated Treasury bonds, pushing U.S. long-term yields lower and reducing the dollar’s yield advantage.
Moreover, the dollar is also being weighed down by reduced expectations of further Federal Reserve tightening though the FED policymakers’ inflation concerns increased at the July meeting, according to the FED minutes.
At the interbank foreign exchange, the rupee opened at 95.57, then rose to 95.56, higher by 17 paise from its previous close.
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