Rupee Slumps as RBI Cuts Swap Facility Cut-off Date

The Indian rupee depreciated by 17 paise to 95.59 against the US dollar in early trade on Monday.

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

Amit Pabari, MD of CR Forex Advisors, said that the market's risk-reward is tilted towards weakness, despite attracting nearly USD 50 billion in foreign currency inflows so far.

The rupee may remain supported in the near term, but technically the 95.20-95.30 zone could act as an important support area for the currency.