Overview
- The rupee weakened to about 95.45 per US dollar on Thursday after earlier intraweek trading around the mid-95s, marking a slide from a 95.33 close on Wednesday.
- Traders cited higher Brent crude prices and the persistent US–Iran standoff threatening Strait of Hormuz shipments as immediate drivers of currency weakness.
- An elevated dollar index near 100 and net foreign institutional investor equity outflows of Rs 1,002.50 crore on Wednesday amplified selling pressure on the rupee.
- Market commentary noted the Reserve Bank of India has acted as a backstop in recent sessions but said that oil-driven import costs and a strong dollar remain the main near-term vulnerabilities.
- By contrast, the Pakistani rupee showed only marginal day-to-day moves and India’s fiscal data — net direct tax mop-up rose about 23% to roughly Rs 8.11 lakh crore through August 10 — offers longer-run support though it has not yet offset external pressure.