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18 August 2026

Rupee depreciation against U.S. dollar

Rupee depreciation is a recurring macroeconomic phenomenon that serves as essential context for understanding India's balance of payments, import costs, and monetary policy, though daily fluctuations are not asked directly.

1 min read Day 3 of 3 1 questions 1 prelims

Notes

  • The Indian Rupee depreciated by 19 paise to close at 95.61 against the U.S. dollar.
  • Key factors contributing to the depreciation include weak domestic equity markets and rising global crude oil prices.
  • Geopolitical factors impacting the currency include the delay in the U.S.-Iran deal.
  • The USD/INR pair is currently experiencing a negative bias due to broader dollar strength.
  • Intraday trading for the rupee occurred within the range of 95.49 to 95.68.

Part of a longer story

This is day 3 of 3 in Indian Rupee exchange rate fluctuations, which has been running since 3 July 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Analyze the impact of rising global crude oil prices and geopolitical uncertainties on the stability of the Indian Rupee in the foreign exchange market. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00

Prelims

  1. Which of the following factors is cited as a primary reason for the recent depreciation of the Indian Rupee against the U.S. dollar?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-08-18/rupee-depreciation-against-u-s-dollar