3 weeks ago
Rupee advances on positive cues as RBI holds policy rate
The rupee is the money used in India, and the dollar is the money used in America.
Every day, the price of one dollar in rupees can change.
On Wednesday, the rupee got a little stronger, so one dollar cost fewer rupees than before.
One report says a dollar cost 95.15 rupees, while another says it cost 95.08 rupees.
Both reports agree the rupee has been rising for nine days in a row.
That is its longest winning streak in more than a year.
The rupee went up because the price of oil fell and the American dollar became weaker in other countries.
India's central bank, called the Reserve Bank of India, kept its main interest rate the same.
It did this while there is a crisis in West Asia.
Hopeful news about a possible deal between the US and Iran also helped investors feel calmer.
The rupee settled at 95.15, up 13 paise, according to one report, while another reported it closing at 95.08, up 20 paise, on Wednesday.
The Reserve Bank of India kept its key policy rate unchanged amid the West Asia crisis, reported as the third or fourth consecutive hold.
The rupee opened at 94.90 and traded in a tight range of 94.89-95.25 during the session.
Traders said sentiment was supported by falling crude oil prices, a weaker US dollar overseas, and lower US treasury yields; the US said a deal with Iran could be reached soon.
The rupee logged its longest gaining streak in over a year, rising 165 paise, or 1.7 percent, in nine straight sessions since July 23.
- Who
- The Indian rupee, the Reserve Bank of India, and forex traders tracking the exchange rate.
- What
- The rupee strengthened against the US dollar on Wednesday, closing at 95.15 (up 13 paise) or 95.08 (up 20 paise) per different reports, extending its longest gaining streak in over a year.
- Where
- India's interbank foreign exchange market in Mumbai.
- When
- Wednesday, following a nine-session rally since the closing level of 96.73 recorded on July 23.
- Why
- Investor sentiment was supported by an overnight decline in crude oil prices, weakness of the US dollar overseas, lower US treasury yields, the RBI's unchanged policy rate, and hopes of de-escalation between the US and Iran.
Key facts
- Rupee close (Article 1)
- 95.15, up 13 paise (provisional)
- Rupee close (Article 2)
- 95.08, up 20 paise
- Previous close
- 95.28 per US dollar
- Session opening
- 94.90 per US dollar
- Session range
- 94.89 - 95.25
- RBI policy rate
- Unchanged; third or fourth consecutive hold per reports
- Gaining streak
- Nine straight sessions (longest in over a year)
- Total gain
- 165 paise, or 1.7 percent, since July 23 close of 96.73
Quotes
Unnamed market observer
Market participant commenting on currency outlook
“We expect the rupee to trade with a slight positive bias on improved global risk sentiments amid de‑escalation of tensions between the US and Iran. The US said that a deal with Iran could be reached soon. Traders may take cues from ISM services PMI data from the US.”
thehansindia.com
Sources
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