Indian rupee ends flat as RBI intervention, portfolio flows blunt Fed hike impact
MUMBAI: The Indian rupee ended flat on Thursday, bucking declines in most regional peers, as likely central bank intervention and inflows related to an equity index rebalancing helped cushion the impact from a US interest rate hike. The Indian rupee closed at 95.93 against the dollar, barely changed from Wednesday’s close at 95.9550. While the rupee had slipped past the 96-per-dollar mark in…
Mumbai witnessed the Indian rupee closing at 95.93 against the US dollar on Thursday, showing minimal movement despite declines in most regional currencies. The rupee had dipped below the 96 mark early in the trading session but bounced back after central bank intervention and inflows related to an equity index rebalancing. Market experts suggest that the rupee may continue to support at the 96 level in the near term.
Following the Federal Reserve's interest rate hike, Asian currencies slipped 0.1% to 0.6%, while the dollar index held above the 100 mark. Reports indicate that the Reserve Bank of India may have conducted dollar-rupee sell/buy swaps to reduce excess rupee liquidity from the banking system, absorbing approximately 0.2% of total deposits through an open market debt sale.
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- Rupee ends flat as RBI intervention, portfolio flows blunt Fed hike impact thehindubusinessline.com
- Indian bonds seen declining as Fed hike could pressure RBI to mirror move brecorder.com
