Rupee climbs to near one-month peak on lower crude oil prices

The Indian rupee climbed to its highest level in almost a month on Monday after crude oil dropped as much as 7%, slipping below $80 per barrel on expectations of an Iran‑conflict resolution, with robust foreign capital inflows adding further support.

The rupee rose roughly 0.3% to 95.13 per dollar, marking its strongest point since July. It closed at 95.38 in the prior session and had posted a gain exceeding 1% over the previous week.

Analysts say the currency moved to about 95.1 per dollar, helped by falling oil prices that brighten India’s inflation and import prospects.

They added that the Reserve Bank of India’s almost daily dollar sales alleviated fears of the rupee slipping past the 97‑per‑dollar threshold.

The rupee’s advance followed a sharp drop in oil prices after U.S. President Donald Trump opted against a new strike on Iran, choosing instead to pursue a swift agreement to curb Tehran’s nuclear program and reopen the Strait of Hormuz.

Brent crude, the global benchmark, slipped about 5% to $83.5 a barrel.

Likewise, U.S. West Texas Intermediate (WTI) crude fell roughly 7%, staying under $79 per barrel.

Moreover, foreign investors turned net buyers of Indian stocks in July, marking their first monthly net inflow since February.

Separately, weekend data revealed that initiatives unveiled by Indian regulators last month have drawn total inflows of $41 billion, primarily from non‑resident deposits.

Additionally, domestic equity indices edged higher on Monday, with benchmarks gaining up to 1% in early trade as buying interest emerged in FMCG, banking, metals and cement shares.