Rupee Steady Near 95.6 as Inflows Cushion Oil Risks
The Indian rupee trades near 95.6 per dollar in a tight range as capital inflows and Reserve Bank of India intervention offset month-end dollar demand and elevated oil prices.
The Indian rupee hovered near 95.6 per dollar, trading in a tight range as strong capital inflows and continued Reserve Bank of India intervention helped cushion the currency, while month-end dollar demand and elevated oil prices limited gains.
The RBI stated that it had garnered nearly $73 billion through measures introduced in June to strengthen the balance of payments, boosting its capacity to support the rupee.
Market participants remained cautious about building long-dollar positions amid expectations of RBI intervention around 95.80 per dollar.
Meanwhile, month-end derivative maturities and corporate dollar payments could add pressure to the currency, while Brent crude remained elevated near $94 a barrel amid the ongoing Iran conflict.
A weaker dollar also provided some support, with the dollar index holding around 98.8 after posting significant losses last week as higher US Treasury yields raised concerns over the country’s growing debt burden.