Rupee Strengthens as Foreign Deposits Boost Central Bank Reserves

The Indian rupee has opened higher against the US dollar on September 3, following a significant increase in foreign-currency non-resident bank deposits. This development has bolstered the central bank's capacity to support the currency.

The rupee opened at 94.30 per dollar, up by 67 paise compared to its previous close of 94.97. According to Finrex, this morning's opening price is expected to be around 94.38 and remain within a range of 94.00 to 94.75.

The RBI has sufficient reserves now to keep the rupee in check. However, for higher levels, it will require dollar purchases by the central bank, which may only happen at lower levels such as 93.50 or below.