Forex
Rupee Weakens as RBI Cuts FCNR(B) Deadline
The Indian rupee opened weaker on Monday at 95.48 against the US dollar, marking a decline of 5 paise from Friday's close of 95.43.
The Reserve Bank of India (RBI) advanced the deadline for its discounted foreign-exchange swap facility for FCNR(B) deposits by a month to August 31, which has impacted rupee sentiment.
The RBI said it brought forward the cut-off date after the facility received an encouraging response and generated more than $50 billion in forex inflows from non-resident Indian deposits.
The decision to shorten the facility's window could affect market sentiment because the rupee remains under pressure from several external factors, including elevated oil prices and demand for dollars from importers.