2 days ago
Rupee Extends Winning Streak as Inflows Lift Reserves
The Indian rupee became a little stronger against the US dollar on Friday.
It finished at 94.43 rupees to the dollar.
This was the rupee’s sixth winning trading session in a row.
It has gained about one rupee in the past week.
Banks brought in large amounts of foreign currency through a special RBI program.
The RBI also sold dollars to help support the rupee.
High oil prices and US-Iran tensions still create risks for the currency.
India’s foreign exchange reserves reached a record high, giving the RBI more dollars to use when needed.
The rupee rose 8 paise to close at 94.43 against the US dollar on Friday.
It gained for a sixth consecutive trading session and has risen about Re 1 over the past week.
Large foreign currency inflows through RBI-backed swap facilities supported the currency.
The RBI also intervened by selling dollars as high oil prices and global volatility pressured the rupee.
India’s foreign exchange reserves climbed $11.475 billion to a record $740.803 billion in the week ended August 28.
- Who
- The Indian rupee, the Reserve Bank of India, banks, and foreign currency investors were involved.
- What
- The rupee strengthened for a sixth straight session, closing at 94.43 against the US dollar.
- Where
- At the interbank foreign exchange market in India.
- When
- Friday; reserves data covered the week ended August 28.
- Why
- Large foreign currency inflows and RBI dollar sales supported the rupee, offsetting pressure from high crude oil prices and global volatility.
Key facts
- Closing exchange rate
- 94.43 rupees per US dollar
- Daily gain
- 8 paise
- Winning streak
- Six consecutive trading sessions
- FCNR(B) deposits mobilized
- $127.22 billion by the end of August
- Total special-facility inflows
- $136.37 billion across FCNR(B), overseas foreign currency borrowing, and external commercial borrowing windows
- Foreign exchange reserves
- $740.803 billion in the week ended August 28
- Reserve increase
- $11.475 billion during the week
Sources
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