The Indian rupee climbed to around 95.1 per dollar, extending last week’s gains to a near four-week high as lower oil prices reinforced optimism from the Reserve Bank of India’s sustained market intervention. Brent crude prices fell 4.7% to below $84 a barrel after US President Donald Trump said plans for an attack on Iran had been shelved to allow negotiations on a nuclear deal, easing concerns over India’s import bill and inflation outlook. The rupee rallied 1.2% last week, its strongest weekly gain since March, as the RBI’s near-daily dollar sales eased fears of a slide beyond 97 per dollar. Additional support came after RBI data showed measures to attract capital inflows had brought in about $41 billion, including $36.7 billion through foreign currency non-resident deposits, bolstering the central bank’s capacity to defend the rupee. Meanwhile, the RBI’s net foreign exchange forward book narrowed slightly to $103.3 billion in June, reflecting lower near-term dollar liabilities.
