Oil on edge, rupee steady: How geopolitics and RBI are lifting the currency ahead of Monetary policy committee meeting

Analysts expect the Indian rupee to enter a stable phase ahead of the Reserve Bank of India's Monetary Policy Committee meeting in August.

Global crude oil prices are the biggest influence on the rupee, with sustained high oil prices potentially increasing inflation and widening India's current account deficit.

Anindya Banerjee of Kotak Securities attributes the recent crude rally to supply route concerns via the Strait of Hormuz, not oil shortage.

Devarsh Vakil of HDFC Securities expects the USD/INR pair to remain in the 94.00-97.00 range, with the RBI focused on preventing excessive volatility.

Debopam Chaudhuri of Piramal Finance notes a direct correlation between the rupee's movement and crude oil prices, with the rupee strengthening as Brent crude eases from above $100 per barrel.