NEW DELHI — The Indian rupee fell to its lowest level since late July on Wednesday, pressured by elevated crude oil prices and persistent demand for the U.S. dollar.
The Reserve Bank of India intervened in the foreign exchange market to temper the depreciation. The RBI has maintained an active presence this week, following aggressive interventions last Friday aimed at preventing significant rupee weakness.
Broader sentiment favored Asian currencies, as the dollar index—measuring the greenback against six major peers—dropped 0.2 percent to 99.4.
India's reliance on crude imports is a key headwind for the rupee. Higher oil costs force importers to demand more dollars, putting downward pressure on the currency.
Market participants await the RBI and Federal Reserve policy review minutes for clues on future rate paths. Both central banks held rates steady at their latest decisions. Analysts at ING expect some hawkish references in the Fed's minutes but do not view them as material for the dollar or short-dated rates.
