On the day of the Reserve Bank of India’s policy to keep the key policy rate unchanged for the fourth time in a row, the rupee ended at its highest level in a month on the back of  lower crude oil prices.

The rupee opened 0.5% higher at 94.92 per dollar, its highest since 1 July, and traded in a range of 94.89-95.25. It eventually lost its gains to end at 95.12, its highest closing level since 7 July.

According to forex traders, the rupee was supported by a slide in oil prices and a weakness of the American currency in the overseas market. US treasury yields also saw a decline.

Traders also said that the rise in forex inflows through the RBI’s special dollar-rupee swap scheme aided the rupee to recover after sliding beyond the 96-per-dollar level.. 

Earlier in the day, the RBI announced its decision to keep the benchmark repo rate unchanged at 5.25%.