Indian Rupee

Central banks need to factor in geopolitical risks before they materialise, not treat them as a sideshow

The rupee traded in a narrow range and edged up 10 paise to 96.65 against US dollar in early trade on Thursday on likely intervention by the Reserve Bank of India. Forex traders said rupee is under pressure amid persistent macroeconomic headwinds, including global dollar strength (DXY trading near multi-month highs), elevated Brent crude prices hovering near USD 102 per barrel. Moreover, relentless foreign fund outflows as well as fall in forex reserves by USD 50 billion in just three weeks from the high of USD 786 billion in September dented investor sentiments further. At the interbank foreign exchange market, the rupee opened at 96.71, then gained some ground to touch 96.65, registering a rise of 10 paise over its previous close. On Wednesday, the rupee closed at 96.75 against the American currency. "Strong corporate importer demand for dollars together with safe-haven capital shifts overpowered the RBI's hawkish policy stance, driving USD/INR higher through the afternoon unti

The rupee depreciated 10 paise to 96.45 against the US dollar in early trade on Wednesday ahead of the Reserve Bank of India's monetary policy decision. The rupee is under continuous pressure amid persistent outflows of foreign funds from domestic equities and strong US dollar holding near multi-month highs above 102 (DXY), forex traders said. Moreover, investors are keenly awaiting the RBI's monetary policy decision for further cues. At the interbank foreign exchange, the rupee opened at 96.37, then lost ground and fell to 96.45, down 10 paise from its previous close. On Tuesday, the rupee settled at 96.35 against the US dollar. "We have the RBI monetary policy meeting today, in which the RBI is expected to raise rates by 25 bps with an outside chance of a 50 bps raise. The RBI may also raise the CRR by 1 per cent to 4 per cent to absorb the excess liquidity. "We await the RBI stance on the falling rupee which has lost more than 2 per cent in the last 1 month with oil demand and

The yield on India's 10-year bonds jumped 5 basis points to 7.27 per cent after the decision and was up 8 bps compared to Tuesday's close of 7.19 per cent, according to data on Bloomberg.

The rupee declined 4 paise to 96.39 against the US dollar in early trade on Tuesday over a rise in crude oil prices and sustained FII outflows. However, positive sentiments in the domestic equity markets and a weaker dollar index cushioned the local unit against further decline, forex traders said. At the interbank foreign exchange, the rupee opened at 96.29 but fell to 96.39, down 4 paise from its previous close. The rupee depreciated 10 paise to close at 96.35 against the US dollar on Monday. "The Reserve Bank has been protecting the rupee from its fall at 96.33 but the demand of dollar from FPIs and oil companies has not come down despite oil falling to USD 100.63 per barrel and dollar index to 102.12," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. The Reserve Bank's Monetary Policy Committee began its three-day meeting on Monday and is likely to raise rates by 25 basis points, aligning with the central banks' hawkish stance a

RBI's net short dollar position in the forward book surged to $200.06 billion at August-end as FCNR(B) flows boosted longer-tenure forward positions

The Indian rupee fell past the 96-per-dollar mark during intra-day trade on Tuesday, hitting a two-month low as higher crude prices triggered worries in energy markets.

The rupee was at 95.97 per dollar at 11:30 ‌a.m. IST in Mumbai, little changed from its close at 95.98 in the previous session

The ‌rupee declined to a low of 96.1475 per dollar, down nearly 0.2% on the day, before trimming losses on likely intervention by the Reserve Bank of India

The rupee depreciated 20 paise to 95.95 against the US dollar in early trade on Monday, as the greenback strengthened further and foreign fund outflows continued unabated amid the ongoing West Asia conflict. Forex traders said elevated global crude oil prices put further pressure on the local unit. At the interbank foreign exchange market, the rupee opened at 95.89 against the American currency and lost further ground to touch 95.95 against the American currency, registering a loss of 20 paise from its previous closing level. On Friday, the rupee appreciated 24 paise to close at 95.75 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, traded at 101.11, up 0.15 per cent. Brent crude futures, the global oil benchmark, were trading higher by 2.31 per cent at USD 106.81 per barrel in futures trade. "Despite the Brent oil for November series being higher due to US President Donald Trump rejecting the peace pro

The rupee stayed weak, sliding 11 paise to 95.84 against the US dollar in early trade on Thursday, as geopolitical uncertainties led to a sharp surge in crude oil prices and pushed US bond yields as well as the greenback higher. Forex traders said the inflow of foreign capital failed to support the local currency due to the selling pressure in the domestic equity market and a strengthening American currency. At the interbank foreign exchange market, the rupee opened at 95.84 against the American currency and stayed under pressure, registering a loss of 11 paise from its previous closing level. The rupee ended Wednesday's session 11 paise lower at 95.73 against the US dollar, a day after appreciating 16 paise. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, traded at 100.87, up 0.06 per cent. Brent crude futures, the global oil benchmark, were trading lower by 0.97 per cent but remained elevated at USD 102.08 per barrel compare

The rupee rebounded from over two-month low levels, gaining 16 paise to 95.73 against the US dollar in early trade on Friday, buoyed by a buying trend in domestic equity markets and easing crude oil prices overseas. Forex analysts said the retreat of crude prices below the 104-per-barrel level from a steep rise earlier this week eased pressure on the Indian currency, even as US bond yields fell from record highs after the US Federal Reserve hiked interest rates by 25 basis point. At the interbank foreign exchange market, the rupee opened at 95.75 and gained slightly to trade at 95.73 against the greenback in early deals, up 16 paise from its previous close. The local unit ended 2 paise higher at 95.89 against the American currency on Thursday, after declining 150 paise, or nearly 1.5 per cent, in the preceding eight sessions since the closing level of 94.43 against the greenback recorded on September 4. Meanwhile, the dollar index, which gauges the greenback's strength against a ..

The rupee staged a spirited recovery after slipping below the 96 level intraday and settled higher by 2 paise at 95.89 against the US dollar on Thursday on heavy dollar selling by banks, snapping its seven-day falling streak. The local currency breached the 96 level to hit a low of 96.10 to a dollar in day trade after a 25 basis point rate hike by the US Federal Reserve, sustained foreign fund outflows from stock markets and high crude oil rates. Forex traders said that dollar selling by banks on behalf of the RBI helped the local unit recoup losses and hit a high of 95.78 to a dollar. A slight correction in the dollar index and crude oil prices also supported investor sentiment despite global geopolitical volatility, they added. At the interbank foreign exchange market, the rupee opened higher at 95.88 but soon reversed gains and hit the intraday low of 96.10, breaching the 96 level for the first time since July 24. The unit recovered during the session and touched the high of 95.

The Indian rupee may need to weaken further to align with shifting trade fundamentals and relatively weaker productivity gains from ​AI, according to an Axis Bank assessment

The Fed raised interest rates by 25 basis points on ​Wednesday, its first increase since 2023, with officials expecting one more increase ​this year.

The rupee fell 3 paise to 95.91 against the US dollar in early trade on Wednesday, facing pressure from a strong American currency and outflow of foreign funds. Positive domestic equity markets, however, supported the local currency, even as crude oil prices remained elevated amid heightened tension in West Asia, forex traders said. At the interbank foreign exchange market, the rupee opened at 95.89 against the US dollar and fell further to 95.91, trading 3 paise lower from its previous close. The rupee settled 34 paise lower at 95.88 against the American currency on Tuesday, after weakening by 113 paise or more than 1 per cent in the preceding five sessions since the closing level of 94.43 recorded on September 4. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.38, higher by 0.04 per cent. The higher dollar index was attributed to market expectations of a hike in interest rate by the US Federal Reserve, whic

The Indian crude basket rose to $128.70 a barrel, adding to concerns over the import bill

The rupee depreciated 30 paise to 95.84 against the US dollar in early trade on Tuesday on elevated Brent crude oil prices and heightened Middle East tensions. With Brent crude touching USD 106 per barrel, increased dollar demand from oil importers raised concerns over India's external balance and inflation, forex traders said. At the interbank foreign exchange market, the rupee opened at 95.84 against the US dollar, registering a loss of 30 paise from its previous close. On Friday, the rupee had settled at 95.54 against the American currency. Forex and equity markets were closed on Monday on account of Ganesh Chaturthi. The surge in crude oil prices and heightened tensions in the Middle East have increased safe-haven demand for the dollar and pushed US Treasury yields higher, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was ..

The rupee has weakened over 1 per cent in three sessions as high crude oil prices and foreign outflows weigh, while experts see 96 as a key level against the dollar

The rupee depreciated 25 paise to 95.33 against the US dollar in early trade on Thursday as Brent crude price crossed the USD 100 dollar mark sharply increasing concerns over India's import bill. Forex traders said elevated crude oil prices and persistent dollar demand also weighed on investor sentiments. At the interbank foreign exchange market, the rupee opened at 95.15 against the US dollar, then lost ground to touch 95.33 against the American currency, registering a loss of 25 paise from its previous close. On Wednesday, the rupee slumped 34 paise to close at 95.08 against the American currency. "Rupee's move beyond the psychologically important 95 level also triggered some additional dollar demand and stop-loss activity. However, the decline was contained by RBI intervention," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was