Rupee Reverses Gains as RBI Intervenes in Dollar Sales

The Indian rupee has seen a recovery, gaining 15 paise to close at 95.81 against the US dollar on Friday.

This bounce back comes after the intra-day low of 95.94 and the previous close of 95.96, despite global crude prices hovering near $105 a barrel.

Market participants attribute this recovery to large public sector banks selling dollars at the behest of the Reserve Bank of India (RBI), which was actively involved in the market even before trade opened.

Siddharth Chaudhary, head- fixed income at Bajaj Asset Management, notes that the rupee remains under pressure from external financing requirements and changing capital flows.