Rupee opens 3 paise down; trades in narrow range against US dollar in early trade
However, RBI-backed dollar sales across spot and forward markets continue to cap losses, keeping the exchange rate below the 96.00 threshold.
The Indian rupee opened slightly weaker, trading 3 paise lower at 95.97 against the US dollar in early trade on Thursday. The decline was kept in check by dollar sales backed by the Reserve Bank of India (RBI) across spot and forward markets, preventing the exchange rate from surpassing the 96.00 level. Sustained foreign portfolio outflows and high US yields continued to put downward pressure on the USD/INR pair.
The rupee opened at 95.95 at the interbank forex market, falling to 95.97 by the end of the initial trading session. On Wednesday, the currency had remained unchanged, settling at 95.94 against the US dollar. The RBI's intervention, through state-run banks supplying dollars in both spot and forward markets, played a crucial role in stabilizing the exchange rate and preventing a breach of the 96.00 threshold, according to Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which measures the greenback's strength against six major currencies, was trading at a high of 101.54, marking a 0.09% increase. This strong dollar is unfavorable for currencies like the rupee, gold, silver, and emerging market currencies. Brent crude, the global oil benchmark, experienced a slight decline of 1.18% to $96.87 per barrel.
On the domestic stock market, the Sensex dropped by 215 points to 72,257.30, while the Nifty fell 107.25 points to 22,518.90. Foreign Institutional Investors (FIIs) sold equities worth Rs 10,148.41 crore on a net basis on Wednesday, as per exchange data.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
