Rupee climbs 1% to 95.76 vs USD after RBI curbs
The Indian rupee climbed 1% to 95.76 per US dollar on Monday, after the Reserve Bank of India took steps to stabilize the currency. The central bank diverted dollar purchases from importers away from the spot market and introduced measures aimed at reducing corporate demand for forward dollars. The rupee opened the day at 95.76, up from 96.73 on Friday.
It performed strongly in Asia's foreign-exchange markets, with most regional currencies also steady. The RBI barred users from rebooking cancelled rupee-linked foreign exchange derivative contracts, reduced the threshold for transactions without underlying exposure, and required banks to hold 20% cash against certain FX contracts.
These actions are expected to raise the cost of hedging against a weaker rupee, potentially passed on to banks' clients, and curb speculative activity in the FX market.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
