Rupee rises 17 paise to 95.56 against U.S. dollar in early trade

Image used for representational purposes. The rupee appreciated 17 paise to 95.56 against the U.S. dollar in early trade on Thursday (August 20, 2026), tracking a weak U.S. dollar due to the U.S. Treasury doubling its buyback operations for longer-dated Treasury bonds. Forex traders noted the dollar index fell to its lowest level since late May, pushing U.S. long-term yields lower and reducing the dollar’s yield advantage. The dollar is also weighed down by reduced expectations of further Federal Reserve tightening, though FED policymakers’ inflation concerns increased at the July meeting, according to the FED minutes. At interbank rates, the rupee opened at 95.57 and rose to 95.56, up 17 paise from its previous close. On Wednesday (August 19, 2026), the rupee ended just 1 paisa higher at 95.73. Meanwhile, the dollar index traded at 98.82, down 0.01%. The U.S. Treasury plans to double its buyback of longer-term government bonds from $2 billion to $4 billion per operation, starting September 9. Analysts like Amit Pabari from CR Forex Advisors noted that lower long-term yields and fiscal concerns could reduce the dollar’s appeal. Brent crude, the global oil benchmark, traded higher by 0.32% at $91.91 per barrel, adding pressure to India’s import bill. Pabari expects USD/INR to gradually move toward 96.20–96.50 if the rupee support near 95.30–95.50 holds. On the domestic market, the Sensex jumped 504.32 points to 77,416.16, while the Nifty rose 118.85 points to 24,198.55. Foreign institutional investors purchased equities worth ₹407.99 crore on Wednesday.