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2026.08.0403:48:02UTC+00Rupee Steady on Hedging Demand

The Indian rupee held near 95.34 per dollar, consolidating its recent gains as renewed dollar demand from importers and uncertainty over US–Iran diplomacy capped further appreciation. Corporates increased hedging of future import payments after the rupee’s sharp rebound, with traders indicating that levels around 95 were seen as attractive for dollar purchases.

At the same time, oil prices inched higher after a steep decline in the previous session, as concerns over potential supply disruptions in the Middle East persisted. Market sentiment stayed cautious after US President Donald Trump said he was holding off on new strikes against Iran while talks continued, even as Tehran denied any negotiations were taking place. This kept the risk of renewed tensions elevated and weighed on the oil-sensitive rupee.

Despite the pause, the rupee traded close to its strongest level in four weeks and was on track for its best weekly performance since March, underpinned by the Reserve Bank of India’s near-daily dollar sales.

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