Rupee settles higher amid oil uncertainty

On August 12, 2026, the India — Indian rupee settled marginally higher at 95.33 against the US dollar, gaining 3 paise from the previous close, as hopes for a quick US-Iran agreement and reopening of the Strait of Hormuz faded. Forex traders noted that Brent Crude was moving towards $90 per barrel amid risk aversion in global markets. The dollar index was slightly up at 99.85, influenced by oil-related uncertainty. The US CPI print is seen as a key factor for the USD/INR pair, with a hotter-than-expected reading potentially strengthening expectations of a September United States — Federal Reserve rate hike, which could pressure the rupee. Domestic equity indices declined, with the S&P BSE Sensex falling 187.90 points to 77,966.35 and the NIFTY 50 dipping 35.75 points to 24,435.95. Foreign institutional investors purchased equities worth Rs 258.55 crore on a net basis on Tuesday. Additionally, Fitch Ratings retained India's sovereign credit rating at 'BBB-' for the 20th consecutive year, flagging risks of fiscal pressure amid youth protests over jobs, while noting India's strong growth outlook and solid external finance fundamentals despite the energy shock from the West Asia conflict.