Rupee Gains 9 Paise To 94.80, RBI Intervention Supports Recovery Amid $110 Crude Oil Concerns
· Free Press Journal
Mumbai: The Indian rupee strengthened by 9 paise to 94.80 against the US dollar in early trading on Monday, supported by the Reserve Bank of India's (RBI) continued intervention in the foreign exchange market.
The domestic currency has recorded its strongest rally in seven months. However, elevated crude oil prices, foreign fund outflows and rising US bond yields remain major challenges.
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Rupee Opens At 94.90, Strengthens To 94.80
At the interbank foreign exchange market, the rupee opened at 94.90 against the US dollar before appreciating to 94.80, gaining 9 paise from Friday's closing level of 94.89.
India's Forex Reserves Fall $8.6 Billion To $726 Billion As RBI Defends RupeeForex traders believe RBI intervention has helped stabilise the currency despite ongoing global economic uncertainty.
Can Rupee Strengthen Towards 94 Against Dollar?
Amit Pabari, Managing Director of CR Forex Advisors, said the USD-INR pair has remained below 95 for three consecutive trading sessions.
He expects the 94.80–94.70 range to be crucial. A sustained move below 94.80 could push the dollar-rupee pair towards 94 over the coming weeks.
However, the currency's direction will largely depend on global crude oil prices.
Crude Oil Above $107 Raises Concerns
Brent crude futures declined 1.88 per cent to $107.79 per barrel, although prices have recently approached $110.
Attacks on commercial vessels near the Strait of Hormuz and threats to Saudi energy infrastructure have raised concerns about global oil supplies.
Higher oil prices could increase India's import bill and put fresh pressure on the rupee.
Crude Oil Futures Drop ₹144 To ₹8,972, Brent And WTI Extend Global WeaknessSensex, Nifty Decline In Early Trade
Indian equity markets witnessed selling pressure, with the Sensex falling 470.50 points to 74,318 and the Nifty declining 147.10 points to 22,999.05.
Meanwhile, Foreign Institutional Investors (FIIs) purchased shares worth Rs 1,165.92 crore on Friday.
India's Forex Reserves Fall By $8.58 Billion
According to RBI data, India's foreign exchange reserves declined by $8.578 billion to $726.027 billion for the week ended October 9.
This followed a $12.952 billion decline in the previous reporting week.