Rupee rises 26 paise to close at 95.17 against U.S. dollar
The Indian rupee strengthened against the U.S. dollar, closing at 95.17 following suspected intervention by the Reserve Bank of India. The currency had faced pressure due to rising crude oil prices and geopolitical tensions stemming from the U.S.-Iran conflict.
Why it matters
Currency volatility in emerging markets like India highlights the broader economic impact of Middle Eastern geopolitical instability on global trade and capital flows.
The rupee pared initial losses and settled for the day with gains of 26 paise at 95.17 (provisional) against the U.S. dollar on Monday (August 31, 2026), on possible RBI intervention, as rising crude oil prices and geopolitical strain weighed on the local unit.
Forex traders said the Reserve Bank of India (RBI) might have intervened to support the currency at lower levels after market participants raised the probability of a rate hike by the U.S. Federal Reserve in September, pushing U.S. Treasury yields higher and triggering a broad dollar rally.
At the interbank foreign exchange, the rupee opened at 95.56 and oscillated between 95.11 and 95.56 during the session. At the end of Monday’s trading session, the rupee was quoted at 95.17 (provisional), higher by 26 paise from its previous close.
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