RismadarVoice Reporters
August 31, 2026
The Indian rupee strengthened to its highest level in nearly four weeks against the United States dollar on Monday, supported by foreign equity inflows and intervention by the Reserve Bank of India (RBI).
The rupee closed 0.2 per cent higher at 95.1625 per dollar, improving from its previous close of 95.3775 and marking its strongest level since August 5.
The currency recorded a monthly gain of 0.2 per cent in August after declining by 0.8 per cent in July.
Market participants attributed the improvement to increased foreign currency inflows linked to an upcoming MSCI index adjustment, alongside the RBI’s continued efforts to stabilise the exchange rate.
Foreign banks were also reported to have sold dollars following expected inflows from the MSCI index rebalancing, which traders estimated could bring about $1 billion into Indian markets from September 1.
The rupee had earlier faced pressure after oil prices increased following renewed tensions between the United States and Iran, while expectations of a possible interest rate increase by the U.S. Federal Reserve also weighed on investor sentiment.
Analysts said the currency’s recent movement suggested reduced pressure on the dollar-rupee exchange rate, with some forecasting further room for the rupee to strengthen if current trends continue.
Dhaval Shah, founder and managing director of De-Risk Forex Consultancy, said technical indicators showed signs of weakness in the dollar-rupee pair, suggesting possible movement towards stronger support levels in the coming months.
Despite recent gains, market observers continue to monitor global oil prices, U.S. monetary policy decisions and geopolitical developments for their potential impact on the Indian currency.
