5 hrs ago
Rupee Jumps 67 Paise as Dollar Inflows Boost Sentiment
The Indian rupee became stronger against the US dollar.
It rose by 67 paise and opened at 94.30.
This was its best level in about two months.
Banks received a large amount of dollars through programmes supported by the Reserve Bank of India.
One programme collected about $127 billion, and other programmes added about $9.15 billion.
The total was about $136 billion, higher than the RBI's earlier estimate of $80 billion.
These dollars give the central bank more ability to support the rupee if it weakens.
Some analysts think the rupee could become even stronger soon.
The rupee opened 67 paise higher at 94.30 against the US dollar, its strongest level in two months.
The currency traded below its 100-day moving average as traders anticipated further gains.
The Reserve Bank of India said lenders collected about $127 billion in dollar deposits through a special overseas-citizen programme.
Two additional programmes brought total reported inflows to approximately $136 billion, exceeding the RBI's earlier $80 billion estimate.
Shinhan Bank projected the rupee could strengthen to around 93.50, while MUFG said the inflows reduced depreciation risks.
- Who
- The Indian rupee, the Reserve Bank of India, lenders, and currency analysts.
- What
- The rupee rose 67 paise to open at 94.30 against the US dollar.
- Where
- In India's foreign-exchange market.
- When
- The rise was reported after the RBI announced the inflow figures late Wednesday.
- Why
- Large dollar inflows from RBI-supported programmes improved sentiment and reduced concerns about sharp rupee depreciation.
Key facts
- Opening exchange rate
- 94.30 rupees per US dollar
- Daily gain
- 67 paise
- Recent performance
- Highest rupee level in two months
- Special-programme inflows
- About $127 billion in dollar deposits
- Additional inflows
- $9.15 billion from two other programmes
- Total reported inflows
- Approximately $136 billion
- RBI estimate
- At least $80 billion in dollar inflows
Sources
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