Rupee Bounces Back Amid Easing Crude Prices
The Indian rupee started Thursday's trading session on a positive note, rising by 4 paise to 95.40 against the US dollar in early trade.
This gain came despite initial losses, which saw the rupee fall to 95.52 against the greenback and register an 8-paise decline from its previous close.
The rupee's recovery was attributed to easing Brent crude prices, which fell below $90 for the first time in several sessions amid ongoing negotiations between Iran and Oman regarding a temporary shipping corridor through the Strait.
According to Amit Pabari, MD of CR Forex Advisors, 'the RBI turned into a net buyer in June, purchasing approximately USD 561 million' after selling dollars for two consecutive months to support the rupee.
Pabari also highlighted the RBI's special measures for FCNR(B) deposits, Overseas Foreign Currency Borrowings (OFCB), and External Commercial Borrowings (ECB), which have attracted nearly USD 73 billion of foreign exchange inflows as of August 21.