The Indian rupee strengthened against the US dollar on August 19, 2025, closing at 86.95 per dollar, marking its highest level in August and its strongest single-day gain in over six weeks with a 0.45% rise. This appreciation was driven by optimism surrounding potential easing of US tariffs, hopes for GST restructuring, a sovereign credit rating upgrade, softening crude oil prices, and easing geopolitical tensions. Despite the broader dollar strength, the rupee outperformed many Asian currencies. However, on August 20, the rupee's rally paused, opening weaker at around 87.16-87.17 per dollar amid weak Asian currency cues, tepid equity flows, and a stronger dollar ahead of the Jackson economic event. Foreign banks reportedly intervened to counter broad dollar demand, keeping the rupee near the 87 per dollar level.