Rupee Gains 47 Paise Against US Dollar on Record FCNR Inflows
· Business · Times of India, LiveMint
The Indian rupee strengthened by 47 paise to open at 94.26 against the US dollar in early trade on Thursday, driven by record foreign-currency deposit mobilisation. The Reserve Bank of India reported that foreign currency non-resident bank deposits brought in $127.226 billion as of August 31 under a special programme. Combined with overseas foreign-currency borrowings and external commercial borrowings, the total inflows reached $136.377 billion. The currency had closed at 94.73 in the previous session. Strong underlying inflows and aggressive RBI intervention supported the rupee against pressures from higher crude oil prices and global yields.
Why it matters
Higher forex liquidity and RBI intervention protect the rupee from imported inflation and global oil price shocks, directly benefiting domestic consumers.
Read the original report — Times of India
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