3 weeks ago
Rupee opens 4 paise higher at 95.17 against US dollar
The rupee is the money used in India.
This story is about how much one US dollar costs in rupees.
On Monday, the rupee opened a little stronger, at 95.17 rupees for one dollar.
That means the rupee went up by 4 paise, which is a very small amount.
One reason is that people think the US central bank might not raise interest rates soon.
Another reason is that India's central bank, called the RBI, keeps helping the rupee by buying and selling money.
Oil prices are lower than before, which also helps.
But there is worry because a very important waterway, the Strait of Hormuz, may not reopen fully.
India's money reserves went up a lot last week.
Experts think the rupee may stay around the same level for a while.
The rupee opened 4 paise higher at 95.17 against the US dollar on Monday, 10 August.
Reduced expectations of a Federal Reserve rate hike, after the US economy unexpectedly shed jobs last month, supported the currency.
The Reserve Bank of India continued intervening in the forex market, including at Friday's market open, to cushion oil-related pressures.
Brent crude traded around $84.50 a barrel, well below its recent high of $100, though Strait of Hormuz uncertainty keeps prices volatile.
India's foreign exchange reserves rose by $10.512 billion to $692.866 billion in the week ended 31 July.
- Who
- The Indian rupee, the Reserve Bank of India, and global actors such as the US Federal Reserve, Iran and Oman.
- What
- The rupee opened 4 paise higher at 95.17 against the US dollar.
- Where
- India's foreign exchange market, with global context involving the Strait of Hormuz oil route.
- When
- Monday, 10 August.
- Why
- Reduced Federal Reserve rate-hike expectations, continued RBI intervention, and Brent crude prices below their recent high supported the currency.
Key facts
- Rupee opening rate
- 95.17 per US dollar, up 4 paise
- Date
- Monday, 10 August
- Brent crude price
- Around $84.50 per barrel
- Brent recent high
- $100 per barrel
- India's forex reserves
- $692.866 billion in the week ended 31 July, up $10.512 billion
- RBI action
- Intervened at Friday's market open; continued forex intervention
- Crude oil price impact
- Every $10 rise in average crude prices can widen India's current account deficit by 30-40 basis points
- Rupee outlook
- 95.00-95.10 seen as a floor; 96.00-96.20 possible over coming sessions
Sources
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