Rupee rises 10 paise against US dollar: What is supporting the currency?
The Indian Rupee recovered 10 paise against the US dollar, supported by Reserve Bank of India interventions despite broader economic pressures. The currency remains challenged by high crude oil prices and foreign fund outflows.
Why it matters
Currency volatility impacts India's import costs and inflation, making RBI's monetary policy and market interventions critical for economic stability.
Rupee began Thursday on a positive note, recovering 10 paise to trade at 96.65 against the US dollar in early deals. The recovery comes amid likely intervention by the Reserve Bank of India, which may have helped the currency hold ground despite continued pressure from global and domestic factors.The currency had opened at 96.71 at the interbank foreign exchange market before moving up to 96.65. Earlier on Wednesday, it ended at 96.75 against the dollar.Despite the early recovery, forex traders said the rupee remained under pressure from a combination of a stronger US dollar, elevated crude oil prices and sustained foreign fund outflows. The DXY was trading near multi-month highs, while Brent crude remained around the $102-a-barrel mark.The decline in India's forex reserves has added to the pressure on investor sentiment.
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