Rupee Tumbles as RBI Advances FCNR(B) Deposit Swap Facility Deadline

The Indian rupee declined by 17 paise to ₹95.59 against the US dollar in early trade on Monday, August 17. The Reserve Bank of India's (RBI) decision to advance the deadline for its special FCNR(B) deposit swap facility has put pressure on the currency.

The RBI had previously set September 30 as the deadline for banks to access the concessional foreign-exchange swap facility linked to fresh Foreign Currency Non-Resident (Bank) deposits. However, it has now been brought forward to August 31.

This move has raised concerns over the pace of foreign-currency inflows and added pressure on the rupee. Traders expect that dollar demand from importers and movements in global crude oil prices will also influence the domestic currency during the session.