Overview

• The Indian rupee closed at 85.64 against the US dollar on May 20, marking a 24 paise decline from the previous session's close of 85.40.
• Moody's recent downgrade of the US credit rating and fluctuating US treasury yields have contributed to market uncertainty and currency volatility.
• Brent crude prices remained stable around $65 per barrel, easing some pressure on India's import costs but maintaining challenges linked to the trade deficit.
• India's forex reserves reached a record $690.617 billion, bolstering the Reserve Bank of India's capacity to stabilize the currency through interventions.
• Market participants expect the rupee to trade within a range of 85.10 to 85.75 in the short term, with RBI intervention acting as a key stabilizing factor.