Rupee Hits Two-Month High Amid Foreign Investment Surge
The Indian Rupee has reached a two-month high, appreciating 67 paise to 94.30 against the US dollar at opening on Thursday, September 3. This surge comes despite pressure from rising crude oil prices and hedging demand.
According to data released by the Reserve Bank of India (RBI), foreign investments have poured in $136.38 billion through specialized programs, boosting forex reserves. The influx is attributed to initiatives introduced in June to attract stable dollar inflows amidst soaring oil prices.
The RBI's foreign-currency deposit program for the diaspora has been a significant contributor, with Indian banks raising $127.23 billion through non-resident foreign-currency deposits. This amount is higher than the predicted range of $80-$90 billion and exceeds the previous initiative in 2013, which garnered approximately $26 billion.
As a result of these inflows, the RBI has increased its dollar sales to bolster the currency, which has also been supported by stabilizing crude oil prices. The benchmark Brent Crude price remains around $95 per barrel after US President Donald Trump dismissed the possibility of further military escalation.