Rupee Supported by Foreign Fund Inflows Despite Oil Price Headwinds The Indian rupee found some support this week as foreign capital flowed into domestic stock markets, according to forex traders. That buying interest helped offset part of the downward pressure caused by rising crude oil prices. How foreign inflows cushion the currency When overseas investors … Read more
Rupee’s Gain Short-Lived as Dollar Demand Reasserts The rupee briefly strengthened past the 89 mark on Tuesday, but the move did not last. Persistent demand for the dollar pushed the local currency back, reversing the earlier gains within the same session. What happened in the market Early trading saw the rupee inch stronger as sellers … Read more
Rupee Finds Support from Lower Oil, But Outflows Keep It Vulnerable Falling crude oil prices gave the Indian currency some breathing room, helping it hold steady at lower levels. Yet forex analysts warn that steady withdrawal of foreign funds is limiting any meaningful recovery and keeping the rupee under pressure. How lower crude helped Crude … Read more
Reports Suggest a Shift in India’s FX Management Regime Recent reports indicate a possible change in how India manages its foreign exchange (FX) policy. This development comes two years after an international body reclassified India’s FX management from a “floating” regime to a “stabilised arrangement” in December 2023. What the 2023 Classification Meant Moving from … Read more
The Indian currency stayed under pressure as a stronger US dollar, weak stock market sentiment and steady withdrawal of foreign capital weighed on the currency, forex analysts said. The combination of these forces has made investors cautious and kept importers and policymakers alert to short-term risks. Why the rupee is facing pressure Strong US dollar: … Read more
RBI sells dollars in NDF markets, keeps pair inside narrow range The Reserve Bank intervened in offshore non-deliverable forward (NDF) markets to open the US dollar lower against the Indian rupee, taking the dollar down to 89.15. Throughout the day the USD/INR traded in a tight band between 89.00 and 89.30, reflecting controlled volatility after … Read more
Stalled US‑India Trade Talks Dent Market Confidence The lack of progress on a US‑India trade agreement has cooled investor sentiment, according to traders. Markets had been hoping a deal would act as a timely policy boost — helping to ease pressure from a widening trade deficit and the slower pace of portfolio inflows. With talks … Read more
The domestic currency found support on the back of a positive start in equity markets and visible intervention by the central bank, forex traders said. The combined effect helped steady the unit after recent swings, keeping volatility in check during early trade. Equity boost calms currency moves Local stocks opened higher, which often reduces demand … Read more
A sudden break in the rupee’s trading range forces a reset in how market participants think about near-term support and resistance. That rethink, combined with questions about how the central bank will respond, tends to keep price action choppy until a new equilibrium emerges. Why a break matters for the rupee When the currency slips … Read more
Traders see central bank stepping in to steady South Asian currency Market participants say the central bank likely intervened in both the spot and non-deliverable forwards (NDF) markets to support the South Asian currency after recent volatility. The move appears aimed at calming currency swings and restoring confidence among importers, exporters and foreign investors. What … Read more