August 21, 2025

The Indian rupee opened the day with a bang, rising on growing hope for peace between Russia and Ukraine and easing trade tariff worries. Forex traders were upbeat at first, feeling the global risk appetite surge. The rupee hit an early high of 86.93 against the US dollar at the interbank foreign exchange market. But the party didn’t last long. The strength of the American dollar in global markets and a rise in crude oil prices punched a hole in the rupee’s gains. By the day’s end, the rupee took a tumble, settling 18 paise lower at 87.25 against the greenback. This was a shift from Wednesday’s close at 87.07. Anuj Chaudhary, Research Analyst at Mirae Asset Sharekhan, explained, “We expect the rupee to trade with a positive bias on improved global risk sentiments and fading worries over trade tariffs. Optimism over GST reforms may also support the rupee. However, dollar demand from importers capped sharp upside.” He added that investors are now eyeing the Jackson Hole Symposium for fresh cues, while watching US data like weekly unemployment claims and PMI. The US dollar index, which measures the dollar’s might against six major currencies, inched up 0.02% to 98.23. Meanwhile, Brent crude oil prices climbed 0.90%, trading at $67.44 per barrel, keeping investors cautious as the Ukraine conflict peace push continues with sanctions on Russia still in place. Market focus is also on whether US Federal Reserve Chief Jerome Powell will tick off hopes for a rate cut when he speaks at the Jackson Hole Symposium starting August 15. His words could sway the markets big time. On the home front, Indian stock markets kept the good vibes going. The Sensex rose for the sixth day in a row, closing up 142.87 points at 82,000.71, with the Nifty advancing 33.20 points to 25,083.75. However, Foreign Institutional Investors sold equities worth a hefty ₹1,100.09 crore on August 20, showing a cautious approach amid global shifts. So, while the rupee showed some fire early on, the strong dollar and climbing oil prices acted like party poopers. All eyes now are on global events and US policy signals that could turn the tide again.

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Tags: Indian rupee, Us dollar, Crude oil prices, Forex trading, Jackson hole symposium, Global markets,