Rupee Stabilizes Amid RBI Support and Ongoing Middle East Tensions
The Indian Rupee (INR) remained stable against the US Dollar (USD) on Monday, buoyed by capital inflows and expectations of Reserve Bank of India intervention.
Crude oil prices are under pressure due to geopolitical tensions in the Middle East, with Brent futures reflecting heightened risk. Analysts at MUFG/BTMU suggest that RBI policy signals point to an end to easing, with the next rate move seen as higher rather than lower.
The RBI has accumulated nearly $73 billion under programs initiated in June to strengthen India's balance of payments, pushing foreign exchange reserves close to record highs. This has provided a buffer for the Rupee against volatility.