Indian rupee hits three-week low, traders wary about fall to 96/USD as RBI stands guard

According to Business Recorder, the Indian rupee slipped to its lowest point since late July on Wednesday, closing at 95.7525 per dollar against 95.68 in the previous session. Higher oil prices and steady dollar demand from companies weighed on the currency, while expected central bank intervention limited the losses.

Traders have been reluctant to bet against the rupee as it approaches the 96 per dollar level, given repeated Reserve Bank of India operations over the past 10 days. On Wednesday the RBI was active through state-run banks for most of the session, a trader at a private bank said. Some exporters also sold dollars once the rupee moved past 95.75, as they expect that zone may mark a near-term peak for the pair.

Brent crude futures rose to nearly $92 per barrel, gaining more than 3% over the week, and remained the main pressure on the rupee. U.S. President Donald Trump said on Tuesday there were no talks with Iran and maintained that the Strait of Hormuz remained passable, contradicting Iran's claim that the waterway is still closed to ships. Investors now await the minutes of the RBI and Federal Reserve policy meetings, where both central banks held rates steady; ING analysts said the minutes are unlikely to be a game changer.