Indian rupee inflow-linked, RBI-backed optimism faces oil test
MUMBAI: The Indian rupee’s rally , propelled by the central bank’s dollar sales and bolstered by hefty inflows from one-off measures, will face a familiar foe on Friday in rising oil prices. The rupee is expected to open in the 94.55 to 94.60 range, per traders, having settled at 94.4850 to the dollar on Thursday, when the currency rallied 0.5%, taking its rally for the week to a percentage…
Mumbai's financial markets witnessed the Indian rupee's resilience on Friday, as the central bank's dollar sales and substantial inflows from special schemes bolstered the currency. The rupee opened at 94.60 to the dollar, having reached a two-month high of 94.4850 on Thursday, indicating a 0.5% weekly gain. This surge in the rupee's value has been driven by a combined effect of the Reserve Bank of India's more assertive intervention and the inflows from its special schemes, which totaled over $136 billion.
The inflows, which surpassed market projections, have provided a significant boost to the currency's outlook. However, the rupee's rally could face a hurdle as oil prices continue to climb, reaching a weekly high and surpassing $96 a barrel. The rising oil prices, driven by escalating tensions and renewed U.S.-Iran hostilities, could weaken the dollar and pose a challenge to the rupee's continued ascent.
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- Rupee's inflow-linked, RBI-backed optimism faces oil test thehindubusinessline.com
