Rupee Rebounds Nearly 1% After RBI Steps In to Curb Speculative Trades
· Business · Economic Times, News18, Moneycontrol
The Indian rupee rebounded nearly 1%, recovering about 100 paise to 95.77 against the US dollar on Monday following Reserve Bank of India measures to curb speculative currency trades. The currency opened at 95.76 per dollar compared to its previous close of 96.73 and touched 95.5850 as a separate window for state-owned oil marketing companies eased spot-market pressure. However, ongoing dollar demand from corporates and importers at lower levels pushed the currency back to 95.9850. The central bank reportedly intervened to prevent the local currency from breaching the psychological 96 mark. The rupee has depreciated about 7% this year, pressured by elevated crude oil prices above $100 per barrel, a strong dollar index, and sustained foreign capital outflows.
Why it matters
The RBI's intervention provides immediate relief to the falling rupee and stabilizes import costs, but persistent global uncertainties and high crude prices mean underlying currency pressures remain.
Read the original report — Economic Times
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