Rupee Rises Amid RBI Leadership Change and Market Dynamics

The Indian rupee rose by 2 paise, settling at 84.83 against the US dollar amid changes at the Reserve Bank of India with Sanjay Malhotra's appointment as governor. Rising market speculation anticipates a rate cut in February. Positive market conditions and RBI interventions supported the rupee despite a strong US dollar.

The Indian rupee closed 2 paise higher at 84.83 against the US dollar on Wednesday, countering its record low amid expectations of monetary policy changes following Sanjay Malhotra's appointment as RBI governor.

Forex markets saw the rupee touch a fresh low of 86.87 in intraday trading, rendered uncertain by the potential for a February rate cut by the Reserve Bank of India. Although the US dollar rebounded, domestic market positives and FII inflows provided support for the rupee.

Meanwhile, Malhotra's innings as the 26th Governor of RBI begins in the context of dual economic challenges of slow growth and high inflation, with market analysts predicting the rupee's continued range-bound movement.

(With inputs from agencies.)