Rupee Marginally Gains as RBI Intervenes Amid Fluctuating Forex Dynamics
The Indian rupee increased slightly by 1 paisa to 84.07 against the U.S. dollar. The Reserve Bank of India's suspected intervention stabilized the currency despite foreign fund outflows and importer demand. Economic indicators showed declining equities, reduced FIIs participation, and slower growth in key infrastructure sectors.
- Country:
- India
The Indian rupee gained marginally, ending Thursday 1 paisa stronger at 84.07 against the US dollar. The Reserve Bank of India's suspected intervention played a pivotal role in keeping the rupee stable amid persistent foreign fund outflows and increased dollar demand from importers.
In the interbank foreign exchange market, the rupee showed minimal fluctuation, opening at 84.08 and closing at 84.07. Recent trends have seen the rupee hovering near its lowest levels, earlier peaking at 84.10 per dollar this month.
Economic indicators painted a mixed picture. The domestic equity market saw a dip, with the Sensex and Nifty both declining significantly. Foreign institutional investors continued as net sellers, withdrawing a notable Rs 5,813.30 crore from capital markets. On the economic front, growth in critical infrastructure sectors slowed, and the fiscal deficit reached 29.4% of its annual target.
(With inputs from agencies.)