Rupee Gains 0.5% to 95.38 Against Dollar as $704 Million Inflows Lift Sentiment
Updated
Updated · BusinessLine · Aug 4
Rupee Gains 0.5% to 95.38 Against Dollar as $704 Million Inflows Lift Sentiment
2 articles · Updated · BusinessLine · Aug 4
Summary
95.38 per dollar marked the rupee’s Tuesday close, up 48 paise over the past week as foreign inflows, a weaker dollar and cheaper crude supported the currency.
$704 million in net FPI inflows over the past week, along with RBI steps to encourage overseas dollar deposits and ease foreign access to government securities, helped strengthen external-sector support.
The dollar index fell about 1.6% last week toward 100, while Brent crude near $82 a barrel is down nearly 20% from July 23 and about 7% this week, easing pressure on India’s import bill.
Wednesday’s RBI policy decision is the next trigger; rates are widely expected to stay unchanged, but traders see the rupee swinging in a 95-96 range as dollar moves and West Asia tensions keep volatility elevated.
Domestic data remain a counterweight, with India’s manufacturing PMI easing to 53.5 in July, its lowest reading in five years.