Rupee Rises 10 Paise to 96.65 Against Dollar
The Indian rupee strengthened by 10 paise to 96.65 against the US dollar in early trade on Thursday, supported by likely intervention from the Reserve Bank of India even as elevated crude oil prices and continued foreign fund outflows kept pressure on the currency.
Rupee Rises to 96.65 Against US Dollar
At the interbank foreign exchange market, the rupee opened at 96.71 before gaining further to touch 96.65, up 10 paise from Wednesday’s close of 96.75.
Forex traders attributed the improvement partly to intervention through state-run banks, which helped prevent deeper losses following recent weakness in the currency.
The rupee continues to trade near historically weak levels despite the central bank’s recent monetary policy tightening.
RBI Intervention Supports Indian Currency
The RBI has indicated that it is prepared to intervene to ensure orderly movement in the foreign exchange market.
Governor Sanjay Malhotra has also suggested that the rupee may currently be undervalued, while acknowledging that currency markets can occasionally move away from underlying fundamentals.
The central bank raised the repo rate by 25 basis points to 5.50% this week and shifted its policy stance towards calibrated tightening.
Crude Oil and FII Outflows Pressure Rupee
Several external factors continue to weigh on the currency.
Brent crude was trading above $102 per barrel amid concerns over Middle East supply disruptions, a significant risk for India because of its dependence on imported oil.
Foreign institutional investors also sold Indian equities worth more than ₹6,100 crore on Wednesday, adding to sustained capital outflows.
The dollar index remained firm around 102.25, further limiting the rupee’s recovery.
