Indian Rupee Ends August With Monthly Gain

Rupee Gains 0.2% in August as Foreign Flows and RBI Support Aid Currency

The Indian rupee ended August with a modest monthly gain after strengthening against the US dollar on the final trading day. Foreign flows linked to the latest MSCI index adjustment and support from the Reserve Bank of India helped the currency remain relatively stable despite pressure from oil prices and global interest-rate expectations.

The rupee closed around ₹95.16 per US dollar, marking a 0.2% rise for the month. Investors are nevertheless watching global crude prices and expectations around US Federal Reserve policy, both of which could influence the currency in September.

For Indian businesses, movements in the rupee can directly affect import costs, overseas borrowing, fuel prices and the competitiveness of exporters.