17 Aug 2026 (Navroze Bureau) : The Indian rupee weakened 17 paise to ₹95.59 against the US dollar in early trade on Monday, August 17, as cautious market sentiment and concerns over future foreign-currency inflows weighed on the domestic currency.
Rupee Opens Lower
At the interbank foreign exchange market, the rupee opened at ₹95.50 and later slipped to ₹95.59. It had closed at ₹95.42 against the dollar in the previous session.
RBI Changes FCNR(B) Swap Deadline
Market sentiment was affected by the Reserve Bank of India’s decision to bring forward the deadline for its concessional foreign-exchange swap facility linked to FCNR(B) deposits.
The facility will now be available for deposits mobilised until August 31, instead of the earlier September 30 deadline.
Why the Move Matters
The RBI facility was introduced to encourage foreign-currency inflows into Indian banks. The central bank said the scheme had attracted $56.84 billion by August 13, making the change in its deadline significant for currency-market expectations.
Oil Prices Add to Pressure
The rupee is also facing pressure from elevated crude oil prices amid continuing geopolitical tensions in the Middle East. India imports most of its crude requirements, making higher oil prices a key concern for the currency.
RBI Support in Focus
Traders expect the RBI to remain active in the foreign-exchange market to contain excessive volatility. Reuters reported that state-run banks were selling dollars, likely on behalf of the central bank, to support the rupee.