Business · Markets · 11 hrs ago
Indian rupee rises 1% after central bank moves to curb dollar demand
India’s rupee rose about 1% against the US dollar on Monday after the Reserve Bank of India announced measures to support the currency.
The measures target dollar demand from oil companies and businesses seeking protection against further falls in the rupee.
The central bank has restricted some currency contracts and required banks to set aside reserves for certain foreign-exchange deals, making some hedging more expensive.
Companies had increased dollar purchases through forward contracts as they prepared for higher import costs, adding pressure to the rupee.
The currency remains 6.6% lower than at the start of the year, and analysts say the rise may be temporary if wider economic pressures persist.
India’s foreign-exchange reserves fell to $734 billion on October 2, from a record $785 billion in September.
Analysts are watching upcoming data on currency hedging and reserves to assess whether the rupee’s recovery can last.
The Indian rupee rose about 1% on Monday after the Reserve Bank of India introduced measures to curb demand for dollars.
The currency opened at 95.76 per dollar, compared with Friday’s close of 96.73.
The central bank’s measures target oil companies’ dollar purchases and corporate demand for currency hedges.
The rupee remains down 6.6% since the start of the year, and analysts said the recovery’s durability is uncertain.
India’s foreign exchange reserves fell to $734 billion on October 2, from a record $785 billion in September.
- Who
- The Reserve Bank of India and the Indian rupee.
- What
- The rupee rose about 1% after the central bank introduced measures to curb dollar demand.
- When
- Monday; the central bank announced the measures on Saturday.
- Where
- India’s currency and foreign exchange markets.
- Why
- The measures aim to reduce pressure on the rupee by redirecting oil companies’ dollar purchases and curbing corporate demand for dollar hedges.
This story does not have two clearly opposing sides.
The Reserve Bank of India announced measures targeting oil companies’ dollar demand and corporate currency hedging.
The rupee opened at 95.76 per dollar, up from Friday’s close of 96.73.
India’s foreign exchange reserves stood at $734 billion.
India’s foreign exchange reserves reached a record $785 billion.
- Rupee gain
- About 1% on Monday
- Opening exchange rate
- 95.76 rupees per dollar
- Friday closing exchange rate
- 96.73 rupees per dollar
- Rupee performance
- Down 6.6% since the start of the year
- Foreign exchange reserves
- $734 billion on October 2; record $785 billion in September
What people are saying
The latest measures taken by the central bank may lead to an initial and rapid rise in the value of the rupee, followed by relative stability.
The rupee’s gradual decline is likely to resume unless pressure on the balance of payments improves more broadly.
Sources
Related news
DMart Q2 profit rises 8.5% as revenue grows 17.8%
India opens dollar window for oil companies to support the rupee
India draft policy targets 604 million tonnes of steel capacity by 2047
Musk says Starlink will be affordable in India as it seeks to compete with Jio
Hyundai nears 10 million cumulative vehicle sales in India
Musk criticizes Ambani as Starlink awaits approval to launch in India
SEBI expects derivative expiry-price guidelines within a week
Zetwerk sets IPO price band at ₹143–₹151 per share
Rupee rises about 1% after India’s central bank takes support measures
Alkali Metals returns to quarterly profit as earnings updates continue
Hyundai reveals India-spec Bayon ahead of October 26 launch
