Buoyed by FCNR(B) deposit inflows, rupee perks up to a two-and-a-half month high
INR opened 67 paise stronger at 94.30 per USD, and closed at 94.48 per USD, up 49 paise over the previous close of 94.97
The Indian rupee experienced a significant boost, reaching a two-and-a-half month high, according to the latest data from the Reserve Bank of India (RBI). The currency opened at 94.30 per US Dollar, marking a 67-paise increase and closing at 94.48 per USD, up 49 paise from the previous close. This improvement was largely driven by a massive inflow of $127.23 billion into FCNR(B) deposits during the 85-day period from June 8 to August 31, 2026.
Overall, between June 8 and August 31, the USD-INR Forex Swap facility attracted inflows of $136.38 billion, including External Commercial Borrowings and Overseas Foreign Currency Borrowing. Dilip Parmar, a Senior Research Analyst at HDFC Securities, highlighted that the rupee's strongest daily gain in over two months was fueled by large capital inflows from the RBI’s concessional swap scheme.
Additionally, a weaker US dollar and stable oil prices provided further support. Experts anticipate that the inflows, coupled with the RBI's efforts to attract foreign capital, could push up India's foreign reserves to a new high of over $750 billion, strengthening the currency's defense.
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