The Indian rupee slipped to 96.72 against the U.S. dollar on Friday, edging 0.61 paise higher from Thursday’s 96.78 close, according to Reuters. Market participants noted that the pullback in the dollar and a dip in 10‑year U.S. Treasury yields offered brief relief.
The rupee’s modest gain came as Brent crude climbed roughly 4%, touching an intraday high near $106 per barrel before easing after President Trump’s statement that Washington would not launch an attack on Iran before the next U.S. election.
Meanwhile, the Reserve Bank of India stepped into the foreign‑exchange market on Thursday to prevent the rupee from sliding below its record low of 96.80. Traders now anticipate that the central bank will continue to deploy interventions to curb sharp depreciation.
Oil prices remain under pressure from supply‑side concerns, yet geopolitical tensions keep volatility alive. Analysts from ICICI Securities see the rupee’s current trajectory as a buffer against a potential U.S. yield hike, which could otherwise widen the currency gap.
Looking ahead, market watchers will focus on the next RBI policy meeting and the U.S. Federal Reserve’s upcoming rate decision. A combination of higher U.S. yields and persistent oil price swings could test the rupee’s resilience in the coming weeks.