Rupee Slips 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, according to the Reserve Bank of India (RBI).

This comes after the RBI announced that its swap facility for FCNR (B) deposits will be available only for deposits mobilized till August 31.

Forex traders said investors' sentiment turned cautious due to this announcement, which may lead to a weakness in the rupee's value.

Amit Pabari, MD of CR Forex Advisors, stated that the support from FCNR (B) deposits remains significant but the market will eventually begin looking beyond this temporary cushion.