Rupee falls 19 paise to 95.61, FCNR inflows fail to boost currency

The Indian rupee declined 19 paise to close at 95.61 against the US dollar on Monday, pressured by rising crude oil prices and weak domestic equity markets. The Sensex fell 281 points to 77,728, and the Nifty dropped 78 points to 24,288. Brent crude rose 0.99% to $89.40 a barrel. The dollar index eased 0.26% to 99.40.

Economic Times BFSI reports that despite FCNR(B) deposit mobilisation reaching $52.3 billion as of August 13, the rupee has remained range-bound around Rs 95-96 per dollar, unlike the 10-12% appreciation seen after the RBI's 2013 scheme. The muted response is attributed to global geopolitical tensions, US policy uncertainty, and weaker capital flows. The RBI has about $100 billion in outstanding forward forex obligations, limiting the impact on headline reserves. CareEdge Ratings estimates FCNR(B) mobilisation could reach $60-80 billion by September 2026.

The RBI on Friday shortened the concessional swap facility for FCNR(B) deposits, making it available only for deposits mobilised until August 31 instead of the earlier September 30 deadline. The facility had attracted $56.84 billion until August 13, according to Deccan Herald. Anuj Choudhary of Mirae Asset ShareKhan said the rupee may trade with a slight negative bias due to delays in the US-Iran deal and rising crude prices.