Indian Rupee Surges 81 Paise to Close at 94.93 Against US Dollar After RBI Measures
The Indian rupee strengthened by 81 paise to close at 94.93 against the US dollar after the Reserve Bank of India announced measures to encourage foreign capital inflows and boost investor confidence.
Prasanth Subramani
The Indian rupee recorded a strong recovery in the foreign exchange market on Friday, appreciating by 81 paise to close at 94.93 against the US dollar following a series of measures announced by the Reserve Bank of India to encourage foreign capital inflows.
Forex traders said investor sentiment improved significantly after the RBI reaffirmed its commitment to maintaining adequate foreign exchange reserves and introduced initiatives aimed at attracting overseas investments into the country.
The central bank also reviewed the impact of rising energy prices and supply disruptions caused by ongoing tensions in West Asia. As widely expected, the RBI kept key interest rates unchanged for the second consecutive policy meeting, prioritizing economic stability amid global uncertainties.
In the interbank foreign exchange market, the rupee opened at 95.72 per US dollar and gained momentum throughout the trading session. It touched an intraday high of 94.89 before settling at 94.93, marking a substantial gain of 81 paise from the previous close.
The strong appreciation comes after a relatively stable session on Thursday, when the rupee had edged up by 2 paise to close at 95.74 against the US dollar.
Market participants noted that the RBI's confidence in India's foreign exchange reserves and its efforts to facilitate capital inflows helped strengthen the domestic currency despite concerns over elevated crude oil prices and geopolitical tensions.
Analysts believe the rupee's near-term direction will continue to depend on global crude oil movements, foreign institutional investment flows, geopolitical developments, and future monetary policy signals from the RBI.
The sharp rise in the rupee is expected to provide some relief to importers and could help moderate imported inflation pressures if the currency maintains its strength in the coming weeks.
