Page 6 - Indian Rupee

Companies face tougher investor scrutiny as rupee hits record lows

The rupee has lost about 10 per cent against the dollar over the past 12 months, the worst performance among Asian currencies

Rupee rises 5 paise to 95.53/$ on potential US-Iran ceasefire deal

The rupee rose 5 paise to 95.53 against the US dollar in early trade on Friday, after the US and Iran reached an understanding to extend the ceasefire for another 60 days. Forex traders said the agreement is expected to keep trade flowing through the strategic Strait of Hormuz while both countries continue negotiations around Iran's nuclear program. At the interbank foreign exchange market, the rupee opened at 95.77 against the US dollar, then gained ground and touched 95.53 in early trade, up 5 paise from its previous close. In initial trade the rupee also touched 95.78 against the American currency. On Wednesday, the rupee settled higher by 12 paise at 95.58 against the US dollar. Domestic equity and forex markets were closed on Thursday on account of Eid-ul-Azha. US and Iranian negotiators reached a tentative agreement on Thursday to extend the ceasefire in the three-month-old war by 60 days. "For markets, this mattered because it reduced immediate fears of fresh disruption in

India may soon get plastic currency notes as RBI revives decade-old plan

Reserve Bank of India is considering a pilot project for polymer banknotes, citing longer shelf life, lower replacement costs and rising demand for cash despite the growth of digital payments

RBI must let rupee depreciate, avoid rate hikes to tame inflation: Subbarao

Former RBI Governor Duvvuri Subbarao has said the central bank must allow some more depreciation in the rupee to help absorb external pressures, and choose liquidity measures, rather than going for rate hikes, if inflation risks intensify. In comments that come days ahead of the second meeting of the rate setting panel for FY27, Subbarao said the monetary policy should be used as a "last resort" to defend the exchange rate. "RBI may of course tighten monetary policy if it believes that to be justified by inflation concerns," Subbarao, who served as the RBI governor between 2008 and 2013, said. "The rupee should be allowed to adjust rather than be rigidly defended because the current pressures reflect a deterioration in India's external balance. A weaker rupee acts as a natural shock absorber," former RBI chief told PTI in an interview. The local currency has been depreciating due to geopolitical uncertainty and the West Asia crisis and touched a lifetime low of 97.15 against the US

Rupee falls 8 paise to 95.78 against US dollar in early trade on oil prices

The rupee slipped 8 paise to 95.78 against US dollar in early trade on Wednesday on elevated crude oil prices as fresh US strikes dampened optimism for an imminent US-Iran peace deal. Forex traders said escalating US-Iran conflict is again boosting safe-haven demand for the dollar. Moreover, Brent oil remained well bid at USD 98 levels as risk aversion, geopolitical risk and war clouds in West Asia kept it higher. At the interbank foreign exchange market, the rupee opened on a positive note at 95.60, but soon pared the gains and fell to 95.78 against the American currency, registering a fall of 8 paise from its previous close. On Tuesday, the rupee depreciated 44 paise to close at 95.70 against the US dollar. "The rupee slipped after crude oil prices rebounded as hopes of an immediate USIran peace deal faded slightly. Reports of renewed US strikes on Iran and delays in negotiations kept markets cautious, even though investors still believe a broader resolution remains possible," C

India's policy mix needs a rethink on capital flows and rupee stability

One root cause of rupee weakness is distortions that deter capital flows

Rupee falls after three-day rally amid spike in crude oil prices

The rupee weakened against the dollar as crude oil prices surged following fresh US strikes on Iran and concerns over disruptions in the Strait of Hormuz

Rupee declines 17 paise to 95.43 against US dollar in early trade

The rupee fell 17 paise to 95.43 against US dollar in early trade on Tuesday, as month-end dollar demand and elevated crude oil prices weighed on investor sentiments. Forex traders said the broader pressure on the rupee is likely to continue as long as geopolitical tensions remain elevated. Moreover, RBI measures and liquidity support may help provide temporary relief and contain volatility in the near term, they said. At the interbank foreign exchange market, the rupee opened at 95.43 against the US dollar, down 17 paise from its previous close. On Monday, the rupee gained 34 paise to close at 95.26 against the US dollar with the RBI selling dollars and keeping the rupee well bid at all upper levels. Meanwhile, Brent oil prices rose after they touched USD 93 per barrel with reports of fresh attacks against Iran offsetting hopes of a deal to reopen Strait of Hormuz. US President Donald Trump on Monday said negotiations with Iran to end the war were progressing "nicely", but offici

A wrong tool for the rupee and serious side effects on growth prospects

A stable rupee also lowers the currency-risk premium FPIs demand, reducing both required returns and inflation risk

Not a BoP but a growing price adjustment problem for India's economy

The first of a two-part series explores the underlying causes of India's balance of payments issue, and offers some solutions

Rupee rises 40 paise to 95.20 against US dollar on hopes of Iran peace deal

The rupee appreciated 40 paise to 95.20 against US dollar in early trade on Monday on optimism that the US and Iran were moving close to a peace deal even though they remained at odds over key issues, including blockades on the Strait of Hormuz. Forex traders said the rupee opened on a positive note as the US and Iran have "largely negotiated" a peace pact to end the nearly three-month war. US President Donald Trump has told the negotiators "not to rush into a deal" and that "both sides must take their time and get it right". Moreover, US Secretary of State Marco Rubio said the US and India are on the verge of finalising an interim trade agreement after progress in negotiations with the US Trade Representative to visit India very soon. At the interbank foreign exchange market, the rupee opened at 95.36 against the US dollar, then touched 95.20 in early trade, up 40 paise from its previous close. On Friday, the rupee rose 75 paise to close at 95.60 against the US dollar. "The trad

Statsguru: Rupee woes signal renewed stress on external accounts

The rupee's slide past 95 per dollar reflects renewed stress on India's external accounts amid rising trade deficits and forex outflows

Rupee ends roller-coaster week with gains; forex kitty shrinks $8 bn

Rupee rebounds sharply over the last two sessions amid aggressive RBI intervention and easing crude oil prices, while forex reserves decline by $8 billion

RBI net-sold record $53.13 billion in FY26, shows monthly bulletin

RBI records highest-ever net dollar sales in FY26 as the rupee remains under pressure from global uncertainty, capital outflows and rising crude prices

Rupee among Asia's most vulnerable currencies amid crude oil risks

Barclays and MUFG warn the rupee could face further pressure from elevated crude prices, widening deficits and prolonged conflict in West Asia

Monthly SIPs to blame for rupee's slide and not CAD; Jefferies explains why

A potential valuation correction, artificial intelligence trade (AI) trade unwinding and the Strait of Hormuz opening for business, the note said, could stem these outflows

RBI may turn to 2013 taper tantrum playbook to defend weakening rupee

The urgency has grown after the rupee slumped to a record low of nearly 97 per dollar this week, driving up import costs and further eroding investors' confidence

Rupee rises 18 paise to 96.18 against US dollar on RBI intervention

The rupee rose 18 paise to 96.18 against the US dollar in early trade on Friday, on slight cooling in crude oil prices, tentative signs of easing geopolitical tensions, and active RBI intervention in the market. Forex traders said markets found some comfort after comments from US Secretary of State Marco Rubio hinted that diplomatic talks linked to the Iran situation were moving in a constructive direction. Although Rubio warned that he does not want to be "overly optimistic," the comments were enough to calm markets temporarily. As a result, Brent crude oil cooled near the USD 104 mark, reducing immediate pressure on the rupee, traders said. At the interbank foreign exchange market, the rupee opened at 96.30 against the US dollar, then touched 96.18 in early trade, up 18 paise from its previous close. On Thursday, the rupee rebounded 50 paise from its all-time closing low to settle at 96.36 against the US dollar. "Another major reason behind the rupee's recovery is growing confi

Don't lose sleep over rupee slide, 100 is just a number: Panagariya to RBI

Arvind Panagariya advised the RBI not to worry about the rupee crossing 100 against the dollar and said depreciation is the right response to the oil shock

Rupee snaps 9-day losing streak to emerge as best-performing Asian currency

The rupee ended a nine-day losing streak on Thursday, aided by RBI intervention in the NDF market and easing crude oil prices