Rupee Dips as RBI Tightens Swap Facility Conditions

The Indian rupee depreciated by 17 paise to 95.59 against the US dollar in early trade on Monday, amid a cautious investor sentiment.

This move comes after the Reserve Bank of India (RBI) announced that its swap facility for FCNR (B) deposits will be available only until August 31, from the earlier cut-off date of September 30.

The RBI introduced this facility to encourage foreign currency inflows and has already attracted $56.84 billion till August 13.

Amit Pabari, MD at CR Forex Advisors, said that while the rupee may remain supported in the near term, the overall risk-reward appears tilted towards weakness.