2026.07.0203:51:45UTC+00Rupee Recovers from 3-Week Low

The Indian rupee firmed to around 94.9 per dollar, rebounding from three-week lows as another drop in crude oil prices lifted sentiment. Brent crude extended its decline after a 1% fall on Wednesday, sliding a further 1% to below USD 71 per barrel amid signs of progress in indirect US–Iran talks and fading concerns over potential disruptions to oil flows through the Strait of Hormuz. While lower energy prices provided some short-term relief by tempering worries about India’s import bill, traders stayed cautious. They pointed to higher US Treasury yields and a stronger dollar, which continued to weigh on most Asian currencies. Earlier this week, the Reserve Bank of India was reportedly active in the market, selling US dollars near the 94.75 level, though the rupee kept weakening once the intervention tapered off. Investors also digested recent US economic data and comments from Federal Reserve officials underscoring the priority of curbing inflation, which further underpinned demand for the US dollar.