Page 3 - Rupee

RBI net dollar purchases hit record $18.65 bn in July: Monthly bulletin

The central bank's concessional swap facility drove dollar inflows, while its outstanding net short position in the forward market surged to a record $136.77 billion

RBI Bulletin: FCNR(B) boost for rupee dented by recent crude oil spike

Commercial banks mobilised $133 billion in FCNR(B) deposits after the RBI opened its concessional swap window in June, prompting the scheme to close a month early

Rupee, bonds witness sell-off as crude oil, US Treasury yields rise

The rupee settled at 95.96 per dollar, while the benchmark 10-year government bond yield rose 6 basis points to 7.11 per cent, its highest level since May 21

Rupee declines to one-week low as oil rally fans global rate hike worries

Dollar sales by state-run banks, likely ‌on behalf of the Reserve Bank of India, limited losses and kept the rupee above 96 per dollar.

Rupee falls 11 paise to 95.84 against US dollar during early trade

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

Rupee extends gains for fifth straight session tracking fall in crude oil

The rupee settled at 95.59 per dollar as falling crude prices and likely dollar sales by state-run banks supported the currency; the 10-year bond yield fell 4 bps

The 'missing middle' in India's exports

Rupee depreciation finds a new ally

Rupee rises 16 paise to 95.73 against US dollar during early trade

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 ..

Rupee settles 2 paise up at 95.89 against dollar after breaching 96 level

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 economics of a 'strong rupee'

Our currency policy is costly for people and generates small benefits for a subset

Rupee may need to weaken further as fundamentals shift: Axis Bank

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

Rupee crosses 96 mark vs US dollar after Fed's first rate hike since 2023

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

Rupee falls 3 paise to 95.91 against US dollar during early trade

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

Rupee falls 0.42% to 95.96, posts sharpest decline since July 14

The domestic currency extended its losing streak to five sessions as rising crude oil prices, global bond yields and strong dollar demand weighed on the rupee

Rupee falls 30 paise to 95.84 against US dollar during early trade

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 ..

Rupee falls 5 paise to close at 95.57 against US dollar on Friday

The rupee pared most of its initial losses and settled at 95.57 (provisional) against the US dollar, down by 5 paise, on Friday, helped by a correction in crude oil prices and suspected RBI intervention. Forex traders said risk aversion in global markets and elevated crude oil prices are weighing on the rupee, which closed lower for the fifth consecutive session on Friday. The rupee opened on a negative note but pared some losses on suspected RBI intervention, a slight recovery in domestic stock markets from the day's lows and profit booking in crude oil prices at higher levels, traders said. At the interbank foreign exchange market, the rupee opened at 95.70 against the US dollar and fell further to a low of 95.79. However, the local unit later pared losses to hit the day's high of 95.51 before closing down by 5 paise at 95.57 (provisional) against the American currency. "The Indian rupee extended its downward spiral... logging its steepest weekly loss since May 15 amid surging cr

After the dollar deluge, costly choices

India must now choose among currency appreciation, inflation, bank losses, indirect public exposure and an expensive sterilisation programme

Rupee falls 25 paise to 95.33 against US dollar as oil prices top $100

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

Rupee's RBI-backed rally fades, slips past 95 on oil, slowing intervention

The rupee depreciated 21 paise to 94.95 against US dollar on Wednesday weighed down by surging crude oil prices, which inched closer to the USD 100-a-barrel mark amid the simmering US-Iran tensions. A weak dollar, however, cushioned the fall, forex traders said. At the interbank foreign exchange market, the rupee opened at 94.80 against the US dollar, then touched 94.95, registering a fall of 21 paise from its previous close. On Tuesday, the rupee fell 18 paise to close at 94.74 against the American currency. "Indian rupee opened lower on escalating geopolitical tensions and surge in crude oil prices. Brent has neared the USD 100 mark as US and Iran attack each other," said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan. The local currency is expected to trade with a negative bias on rising crude oil prices and escalating geopolitical tensions, he said. "Weak global markets may further pressurise the rupee. However, a weak dollar may support the rupee at lower levels. ..

Rupee sees worst day in eight weeks as elevated crude renews pressure

Rupee settles at 94.83 per dollar against 94.49 previously as rising crude oil prices, importer hedging and persistent risk-off sentiment boost dollar demand