Page 2 - Rupee

RBI steps up intervention to support rupee amid higher oil prices

In one instance, the RBI spent $7 billion in just a day intervening in onshore and offshore markets as the rupee approached a record low

RBI net buys $561 million in June amid foreign inflows: Monthly bulletin

The central bank turned a net dollar buyer for the first time since February, while its outstanding net short position in the forward market declined in June

Rupee leads Asian currencies; bond yields ease as crude slips below $90

The rupee settled 0.35 per cent higher at 95.41 per dollar as central bank intervention and falling crude prices lent support; benchmark bond yields also eased

Rupee falls 4 paise to 95.74 against US dollar during early trade

The rupee traded in a narrow range and fell 4 paise to 95.74 against the American currency in early trade on Tuesday, as elevated crude prices and importer dollar demand weighed on the currency. Forex traders said the RBI's continued intervention through state-run banks helped prevent a sharper decline, keeping USD/INR in a narrow range despite weakness in Asian equities and renewed geopolitical uncertainty around Iran. At the interbank foreign exchange market, the rupee opened at 95.74, registering a fall of 4 paise from its previous close. On Monday, the rupee settled with a marginal gain of 1 paisa at 95.70 against the US dollar. "Overall, the rupee remains firmly range-bound around 95.5096.00, with oil prices and RBI intervention likely to remain the key near-term drivers," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP. The rupee has remained range bound for the last two weeks with oil companies and RBI buying dollars at the

Strong inflows via RBI's swap schemes lift reserves, fail to boost rupee

As RBI largely maintains hands-off approach to intervention

Bond yields harden, rupee slips on hawkish MPC, rising crude oil

Benchmark 10-year government bond yield rose to 6.85% during the week, while the rupee weakened to 95.71 per dollar amid higher crude prices and hawkish MPC signals

Rupee gains 9 paise to 95.65 against US dollar during early trade

The rupee gained 9 paise to 95.65 against the US dollar in early trade on Friday, supported by the weakening of the American currency in the overseas markets. Forex traders said for India, a softer dollar is being offset by another challenge elevated crude oil prices. Meanwhile, RBI Governor Sanjay Malhotra has indicated that the central bank expects at least USD 80 billion of foreign currency inflows. According to forex traders, while the RBI Governor's statement offered some reassurance, elevated oil prices, persistent geopolitical uncertainty, and a structurally reduced foreign presence continue to neutralise fresh dollar inflows. At the interbank foreign exchange, the rupee opened at 95.69, then rose to 95.65, higher by 9 paise from its previous close. On Thursday, the rupee pared initial gains and settled for the day down 1 paisa at 95.74 against the US dollar. "Governor Sanjay Malhotra indicated that the central bank expects at least USD 80 billion of foreign currency inflo

Centre eases rules for exporters to receive overseas payments in rupees

DGFT amendment puts eligible rupee export receipts on a par with foreign-currency earnings for FTP benefits and export obligations, removing a key regulatory uncertainty

Rupee rises 17 paise to 95.56 against US dollar during early trade

The rupee appreciated 17 paise to 95.56 against the American currency in early trade on Thursday tracking a weak US dollar, after the US Treasury announced that it would double its buyback operations for longer-dated Treasury bonds. Forex traders said the dollar index fell to its lowest level since late May after the US Treasury announced that it would double its buyback operations for longer-dated Treasury bonds, pushing US long-term yields lower and reducing the dollar's yield advantage. Moreover, the dollar is also being weighed down by reduced expectations of further Federal Reserve tightening though the FED policymakers' inflation concerns increased at the July meeting, according to the FED minutes. At the interbank foreign exchange, the rupee opened at 95.57, then rose to 95.56, higher by 17 paise from its previous close. On Wednesday, the rupee stayed almost flat, ending just 1 paisa higher at 95.73 against the US dollar. Meanwhile, the dollar index, which gauges the ...

Rupee rises 1 paisa to 95.73 against US dollar during early trade

The rupee rose marginally by 1 paisa to 95.73 on Wednesday, assisted by RBI intervention, as heightened tensions in West Asia kept global markets on the edge. A rise in global crude oil prices added pressure to the local unit while a decline in the dollar index and FII inflows provided support, forex traders said. At the interbank foreign exchange, the rupee opened at 95.72 before slipping to 95.73, up 1 paisa from its previous close. The rupee depreciated 13 paise to close at 95.74 against the US dollar on Tuesday. "The rupee was very range-bound yesterday (Tuesday). With oil prices above USD 91, there were bids from oil companies... the key point is that the rupee is showing reasonable resilience despite the oil shock, largely because of suspected continued RBI intervention," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. US President Donald Trump said on Tuesday that the US has no talks planned with Iran but insisted the Strait

Global headwinds: Robust swap inflows lift rupee just 0.1% vs 8.8% in 2013

Global factors weigh on the currency despite sizeable FCNR(B) inflows, as economists flag tight financial conditions, volatile energy markets and competition for capital

Rupee fall may reduce effective incentives for semiconductor projects

The impact could be significant because nearly 65% of the cost of a semiconductor project is spent on machinery, most of which has to be imported and paid for in dollars

Rupee falls 7 paise to 95.68 against US dollar during early trade

The rupee depreciated 7 paise to 95.68 against the US dollar in early trade on Tuesday, weighed down by elevated crude oil prices and persistent demand for greenback. Forex traders said Brent crude near USD 91 per barrel increased oil-related dollar demand and the Reserve Bank's earlier-than-expected closure of the concessional FCN (B) forex-swap facility raised concerns over future dollar inflows. At the interbank foreign exchange, the rupee opened at 95.68, down 7 paise from its previous close. On Monday, the rupee depreciated 19 paise to close at 95.61 against the US dollar. The rupee opened lower as oil prices rose with the US and Iran remaining at odds over the Strait of Hormuz and there was no progress on a peace deal, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.63, down 0.01 per cent. Brent crude, the

Rupee, bond bets retreat after RBI's dollar swap window ends early

The estimates are being reworked after the central bank Friday decided to end a program attracting dollars from overseas Indians a month earlier than planned, having garnered more than $50 billion

Rupee weakens, bond yields harden as RBI shuts FCNR(B) swap window early

The rupee settled at 95.61 per dollar, while the benchmark 10-year government bond yield rose to 6.81 per cent as the RBI's move raised concerns over dollar inflows

Rupee seen weakening to 97 per dollar by FY27 end amid global risks: BMI

The Indian rupee is expected to weaken further against the US dollar over the next two fiscal years, pressured by elevated energy prices, global risk aversion and less favourable interest-rate differentials, while government measures to attract foreign capital should help contain the pace of depreciation, BMI, a Fitch Solutions Company, said. BMI expects the rupee to weaken to Rs 97 per US dollar by the end of FY2026-27, which runs from April 2026 to March 2027, and to Rs 99 per dollar by the end of FY2027-28, from Rs 95.4 currently. The currency has already weakened by about 4 per cent since the start of the US-Iran conflict, with higher energy prices and a broader risk-off environment weighing on the rupee, the research firm said in a note. India's heavy dependence on imported energy is likely to remain a key source of pressure. The country imports about 90 per cent of its oil requirements, meaning sustained increases in Brent crude prices would raise the import bill and increase

RBI's heavy FX footprint revives memories of a tightly managed rupee

Despite volatile crude oil prices ​due to war in the West Asia and persistent dollar demand from hedging flows, the rupee has ‌demonstrated remarkably muted price action since last week

Rupee falls 17 paise to 95.59 against US dollar during early trade

The rupee depreciated 17 paise to 95.59 against the US dollar in early trade on Monday, as the overall risk-reward appears tilted towards weakness. Forex traders said investors' sentiment turned cautious after the Reserve Bank of India on August 14 said that its swap facility for FCNR (B) deposits will be available only for deposits mobilised till August 31. Earlier, the cut-off date for Foreign Currency Non-Resident (Bank) or FCNR (B) deposits was September 30. Under the FCNR (B) scheme, banks offer attractive interest rates to mobilise foreign currency deposits. The Reserve Bank on Friday said its concessional swap facility, introduced to encourage foreign currency inflows, has attracted USD 56.84 billion till August 13. At the interbank foreign exchange, the rupee opened at 95.50, then fell to 95.59, down 17 paise from its previous close. On Friday, the rupee appreciated 3 paise to close at 95.42 against the US dollar. "After attracting nearly USD 50 billion of forex inflows,

Rupee gains 2 paise to 95.43 against US dollar during early trade

The rupee gained 2 paise to 95.43 against the US dollar in early trade on Friday, backed by a weaker greenback overseas. The Indian currency, however, remained under pressure due to the withdrawal of foreign funds from domestic equities and rising crude oil prices amid geopolitical uncertainties, forex traders said. At the interbank foreign exchange market, the rupee opened at 95.39 and later slipped to trade at 95.43 against the American currency in early deals, up marginally by 2 paise from its previous closing level. On Thursday, the rupee closed 12 paise lower at 95.45 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.08 per cent lower at 99.78. Brent crude, the global oil benchmark, was trading higher by 0.16 per cent at USD 87.21 per barrel in futures trade. According to analysts, the dollar index retreated following a fall in US Treasury yields and inflation in the world's largest ec

Rupee falls 7 paise to 95.40 against US dollar during early trade

The rupee depreciated 7 paise to 95.40 against the US dollar in early trade on Thursday pressured by elevated crude oil prices and lingering geopolitical risks. Forex traders said investor sentiment remains fragile as the standoff between US and Iran does not seem to be coming to an end with Iran warning of keeping the Strait of Hormuz closed till 2029 while the US President saying that the Hormuz is in US's command. At the interbank foreign exchange market, the rupee opened at 95.40, registering a fall of 7 paise from its previous close. On Wednesday, the rupee closed at 95.33 against the American currency. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 100.01. Brent crude, the global oil benchmark, was trading lower by 1.22 per cent at USD 87.89 per barrel in futures trade. With oil prices near to USD 88 a barrel but the dollar index higher at 100.01, the rupee opened at 95.40 on Thursday, after rising to 9