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Indian Rupee Hits 10-Week High on Inflows, Softer Dollar
The Indian rupee became stronger against the US dollar.
It finished the day at 94.48, its best level in about 10 weeks.
More dollars entering India through a Reserve Bank of India deposit program helped the rupee.
The US dollar also became weaker compared with other major currencies.
This made currencies such as the rupee more attractive.
Oil prices rose to about $97 per barrel, which could hurt India because it buys oil from other countries.
Investors will watch US jobs and unemployment reports for clues about future US interest rates.
Analysts expect the rupee to keep a generally positive trend, within a range of 94.25 to 95.
The Indian rupee closed at 94.48 against the US dollar, its highest level in 10 weeks.
The currency was supported by stronger-than-expected inflows through the Reserve Bank of India’s foreign-currency non-resident deposit scheme.
The Reserve Bank of India had mobilised $136.4 billion through special schemes by the end of August.
A weaker dollar index and gains in Asian currencies, particularly the Japanese yen, supported the rupee.
Higher crude prices remain a risk because India is a net oil importer, while investors await key US employment data.
- Who
- The Indian rupee, the Reserve Bank of India, currency-market analysts and investors.
- What
- The rupee rallied to close at 94.48 against the US dollar, supported by RBI inflows and a weaker dollar.
- Where
- India’s currency market, against the US dollar.
- When
- The currency’s reported close was during the trading session described; the RBI’s cumulative inflows were measured through the end of August.
- Why
- The rally was attributed to strong foreign-currency inflows, a softer dollar index and gains in other Asian currencies.
Key facts
- Closing level
- 94.48 per US dollar
- Reported high
- The article says the rupee touched 94.27 intraday and describes this as a two-month high.
- RBI mobilization
- $136.4 billion through special schemes by the end of August
- Brent crude
- Near $97 per barrel after rising about 2%
- WTI crude
- Near $92 per barrel
- Analyst outlook
- A positive bias within a projected range of 94.25–95
- Upcoming indicators
- US non-farm payrolls and unemployment data
Quotes
Anil Kumar Bhansali
Head of treasury at Finrex Treasury Advisors LLP
“US dollar fundamentals have softened somewhat: weaker US private employment data, falling Treasury yields and comments from Fed officials suggesting there is no immediate need for a rate hike have reduced expectations of aggressive Fed tightening.”
financialexpress.com
Jateen Trivedi
VP Research Analyst for commodities and currency at LKP Securities
“Rupee is expected to maintain a positive bias, with the range seen between 94.25–95.”
financialexpress.com
Sources
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