Rupee settles on flat note, higher by 3 paise at 95.70 against U.S. dollar
The Indian rupee saw a marginal gain against the U.S. dollar, settling at 95.70 as a weaker dollar index was offset by rising global crude oil prices. Analysts suggest the currency may face continued pressure due to geopolitical tensions and inflation concerns.
Why it matters
Currency fluctuations impact India's import costs and inflation, making this a critical indicator for the country's economic stability.
The rupee pared initial gains and settled for the day with gains of just 3 paise at 95.70 against the U.S. dollar on Thursday (August 20, 2026), as the support from the weaker dollar index was negated by elevated crude oil prices.
Forex traders said while a weaker U.S. dollar eases some depreciation pressure on the domestic currency, crude oil hovering above $90 would continue to keep pressure on India's import bill.
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.
At the interbank foreign exchange, the rupee opened at 95.57 against the greenback and traded in a range of 95.56-95.72 during the session. It eventually settled at 95.70 (provisional), higher by 3 paise from its previous close.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in