Forex
Rupee Finds Firm Ground as RBI Swap Exit Weighs on USD/INR
The Indian Rupee (INR) has shown resilience against the US Dollar (USD), trading around 95.60 on Monday after a two-day decline.
This strength comes despite the Reserve Bank of India's (RBI) decision to terminate its foreign currency non-resident (FCNR) deposit FX swap facility one month before the planned end date, which attracted nearly $57 billion in inflows.
The RBI's move could create headwinds for the Rupee going forward and may push USD/INR higher. Market participants anticipate that USD/INR will trade within a 95.00 to 95.50 band this week.