Rupee Rises 15 Paise; Gold & Silver Slip Before Fed Decision

Rupee Hits Two-Week High as RBI Support and Cheap Crude Boost Sentiment

The Indian rupee opened on a firm note on Tuesday, July 28, 2026, gaining 15 paise to trade at 95.76 against the US dollar — its strongest level in two weeks, according to Livemint. The recovery came after a period of weakness, with the move aided by two key tailwinds: active intervention by the Reserve Bank of India (RBI) and a softening in crude oil prices linked to ongoing US-Iran diplomatic talks.

Lower crude oil prices are a direct positive for India, which imports the bulk of its petroleum needs. A cheaper oil import bill reduces pressure on the current account deficit and lessens demand for US dollars, both of which typically lend support to the domestic currency. RBI intervention, meanwhile, helped smooth volatility and signalled the central bank’s intent to prevent excessive depreciation.

Gold and Silver Retreat on MCX Ahead of Fed Policy Call

While the rupee found its footing, precious metals moved in the opposite direction. Both gold and silver prices declined by up to 1% in early trade on the Multi Commodity Exchange (MCX) on July 28, according to Livemint. The pullback was attributed primarily to profit-booking by domestic traders who chose to lock in recent gains before the outcome of the US Federal Reserve’s much-anticipated policy meeting.

Global gold prices also edged lower, with a stronger US dollar weighing on bullion values internationally. The dollar’s firmness is a classic headwind for gold, which is dollar-denominated and therefore becomes more expensive for holders of other currencies when the greenback rises. Broader precious metals including silver, platinum, and palladium tracked similar weakness globally, according to Economic Times.

All Eyes on the Federal Reserve

The central narrative driving commodity and currency markets today is the Federal Reserve’s upcoming policy decision. Traders are cautious about building large positions ahead of the announcement, given that any surprise in the Fed’s rate guidance could trigger sharp moves across asset classes. US President Donald Trump has publicly urged the Fed to cut interest rates, adding a political dimension to what is already a closely watched event.

Notably, China’s gold imports via Hong Kong recorded a significant year-on-year increase in June, suggesting that long-term demand for the metal remains robust even as short-term traders step aside ahead of the Fed. For Indian investors, the combination of a stronger rupee and softer MCX prices may offer a window of relative calm — though direction will ultimately be set by whatever signal emerges from Washington.

For information only and not investment advice. Summarised from the cited sources; figures may be delayed. Do your own research before investing.