INR Vs USD Rate Today: The Indian rupee opened 71 paise higher at Rs 94.31 per US dollar compares to its previous close of Rs 94.98 against the greenback after a massive $137 billion mobilisation through foreign-currency non-resident bank deposits far exceeded market expectations, bolstering the Reserve Bank of India's capacity to support the currency.
India attracted a much larger-than-expected inflow through special foreign-currency mobilisation schemes, the central bank said on Wednesday, Sept. 2, swelling India's forex reserves and providing RBI more scope to contain pressure on the rupee. The bulk of the haul came from non-resident deposits, with a further $3.89 billion raised through external commercial borrowings and $5.26 billion through overseas foreign-currency borrowings, the RBI said in its statement.
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Rupee VS US Dollar Rate Today
''Even in the face of a strong US dollar, risk aversion moods, widening current account deficit and stubborn crude oil prices, the rupee held its own as a steady, middle-of-the-pack player in Asian currencies,'' said Dilip Parmar - Senior Research Analyst, HDFC Securities. Originally scheduled to close at the end of September, the RBI's dollar deposit scheme was wound up on Aug. 31 following robust inflows. A separate window allowing banks to raise funds from overseas remains open.
The inflows give the RBI greater support to shield the rupee from the impact of higher oil prices and rising US Treasury yields. Traders said the central bank has stepped up dollar sales in recent days to support the currency. The US dollar's retreat has been driven largely by a rally in the Japanese yen. Investors are now awaiting fresh US economic data and comments from Federal Reserve officials for clues on the central bank's policy path and whether it will raise rates this month.
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''Rupee has been gaining in recent days mainly due to aggressive dollar selling by the RBI and also covering by traders who have been long on dollar. Rumours of big dollar inflows in the last few days of the FCNR (B) deposit window before its closure on August 31 also contributed to the strength in the dollar,'' said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
Rupee VS US Dollar Rate Trend
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