Indian rupee seen modestly stronger near 95.75-95.80 as oil, yields aid sentiment

  • Indian rupee is expected to open at 95.75-95.80 per dollar on Tuesday.
  • India's balance-of-payments measures have raised $143.6 billion.
  • RBI intervention is expected to continue as traders monitor oil and policy rates.

The Indian rupee is expected to open modestly stronger on Tuesday at 95.75-95.80 per dollar, compared with Monday's close of 95.8150, as lower crude prices and long-dated U.S. Treasury yields improve risk sentiment. Importer hedging demand is expected to limit gains. India's balance-of-payments measures have raised $143.6 billion, helping the Reserve Bank of India contain depreciation expectations, while frequent foreign-exchange intervention is expected to continue. Brent crude was near $100 a barrel ahead of potential U.S.-Iran talks at the United Nations General Assembly. Traders are also increasing bets on Reserve Bank of India tightening after the Federal Reserve and Bank of Japan raised rates last week. Natixis analysts have forecast 50 basis points of RBI hikes by the end of 2026, while markets price a 56% chance of a U.S. rate increase in October.

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