RBI measures see sharp impact as rupee rises 1% against US dollar
Rupee emerged as one of Asia's strongest-performing currencies, even as most regional currencies moved within a narrow range. Despite Monday's sharp rise, the rupee has lost 6.6% against the dollar so far this year. On Saturday, the RBI announced a set of measures targeting two major sources of pressure on the rupee.
The Indian rupee surged by 1% against the US dollar at the start of trading on Monday, following the Reserve Bank of India (RBI) easing pressure on the currency. The move came after the RBI shifted oil companies' dollar purchases away from the spot market and took steps to curb corporate demand for forward dollars. Monday's opening rate of 95.76 against the US dollar marked a significant improvement for the rupee, which had lost 6.6% against the dollar so far in 2022.
Despite this sharp gain, the rupee remains vulnerable, as analysts believe the durability of the gains depends on whether underlying pressures on the currency ease.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
