Rupee Roars To Two-Month High, Jumps 67 Paise As FCNR-B Inflows Surge
· Free Press Journal
Mumbai: The Indian rupee staged a sharp rally against the US dollar on Thursday, September 3, gaining 67 paise to reach a two-month high after stronger-than-expected FCNR-B inflows boosted sentiment.
The rupee opened at Rs 94.30 against the US dollar, compared with Wednesday’s closing level of Rs 94.97. The move marked its biggest single-day gain since June.
Visit mchezo.life for more information.
RBI’s $127 Billion FCNR-B Boost
The rally followed the Reserve Bank of India’s disclosure that banks had mobilised $127.23 billion through Foreign Currency Non-Resident Bank, or FCNR-B deposits.
Including external commercial borrowings and overseas foreign currency borrowings, cumulative inflows reached $136.38 billion.
FIIs Return To Indian Markets, Rupee Strengthens To 94.40/$ As Selling Eases After 9 Trading SessionsThe mobilisation followed the RBI’s June 8 facility designed to attract foreign currency into India’s banking system and strengthen external buffers.
Inflows accelerated significantly during August. As of August 21, banks had mobilised $65.4 billion through FCNR-B deposits, before the figure surged to $127.23 billion by month-end.
Following the strong response, the RBI brought forward the closure of the FCNR-B deposit mobilisation window to August 31 from September 30.
USD-INR Levels in Focus
Currency experts see an immediate USD-INR trading range of Rs 94.10-Rs 95.50. A decisive break below Rs 94.10 could potentially push the rupee towards Rs 93.50.
Rupee Opens At 95.52 Per Dollar, Know- Why Is Pressure Rising On The Indian Currency & What Are Asian Currencies Signalling?The RBI’s improved foreign exchange position could also provide greater flexibility to rebuild reserves and contain excessive rupee depreciation.
However, risks remain. Brent crude trading near $95 per barrel and elevated global bond yields could pressure the Indian currency amid continuing geopolitical tensions.