The rupee depreciated 17 paise to 95.59 against the US dollar in early trade on Monday, as the overall risk-reward appears tilted towards weakness.
Forex traders said investors’ sentiment turned cautious after the Reserve Bank of India on August 14 said that its swap facility for FCNR (B) deposits will be available only for deposits mobilised till August 31. Earlier, the cut-off date for Foreign Currency Non-Resident (Bank) or FCNR (B) deposits was September 30.
Under the FCNR (B) scheme, banks offer attractive interest rates to mobilise foreign currency deposits.
The Reserve Bank on Friday said its concessional swap facility, introduced to encourage foreign currency inflows, has attracted USD 56.84 billion till August 13.
At the interbank foreign exchange, the rupee opened at 95.50, then fell to 95.59, down 17 paise from its previous close.
On Friday, the rupee appreciated 3 paise to close at 95.42 against the US dollar.
“After attracting nearly USD 50 billion of forex inflows,
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