The rupee traded in a narrow range and edged up 10 paise to 96.65 against US dollar in early trade on Thursday on likely intervention by the Reserve Bank of India.
Forex traders said rupee is under pressure amid persistent macroeconomic headwinds, including global dollar strength (DXY trading near multi-month highs), elevated Brent crude prices hovering near USD 102 per barrel.
Moreover, relentless foreign fund outflows as well as fall in forex reserves by USD 50 billion in just three weeks from the high of USD 786 billion in September dented investor sentiments further.
At the interbank foreign exchange market, the rupee opened at 96.71, then gained some ground to touch 96.65, registering a rise of 10 paise over its previous close.
On Wednesday, the rupee closed at 96.75 against the American currency.
“Strong corporate importer demand for dollars together with safe-haven capital shifts overpowered the RBI’s hawkish policy stance, driving USD/INR higher through the afternoon unti
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