Overview
- The rupee strengthened to about 95.56–95.65 per US dollar on Aug. 20–21 after the US Treasury said it would at least double buybacks of longer‑dated Treasuries from $2bn to $4bn per operation.
- The Treasury step pushed some long‑term US yields lower and weakened the dollar, giving the rupee temporary relief against depreciation pressures.
- Brent crude held above $90 a barrel, which raises India’s oil import bill and keeps upward pressure on domestic inflation, limiting sustained currency gains.
- RBI Governor Sanjay Malhotra said the central bank expects roughly $80 billion of foreign currency inflows from June measures, with about $56.85 billion mobilised so far, providing structural support to reserves.
- Domestic equity moves were mixed and foreign investor flows remained uneven, so markets say the rupee’s next direction will depend on oil prices, regional tensions and US yield trends.