Overview

• The rupee traded as strong as about 87.21 per dollar on Aug. 19 and was last near 87.23, the strongest level so far this month.
• It had closed at 87.39 on Aug. 18 after a 20‑paise rise, helped by a rally in domestic equities.
• Nomura said the Trump–Putin meeting and subsequent U.S.–Ukraine talks appear to reduce the likelihood of additional U.S. tariffs or sanctions on India.
• Optimism over Prime Minister Narendra Modi’s proposed GST changes and tax cuts has lifted sentiment toward the currency.
• Traders cited active RBI dollar sales with FX reserves down about $10 billion last week, and analysts also pointed to support from S&P’s upgrade of India’s sovereign rating to BBB from BBB-.