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Rupee opens 3 paise lower at 95.36 against dollar
The Indian rupee opened at 95.36 against the US dollar on Thursday, August 13, down 3 paise from the previous close, as persistent dollar demand from hedgers weighed. The Reserve Bank of…
The Story in Brief
The Indian rupee opened at 95.36 against the US dollar on Thursday, August 13, down 3 paise from the previous close, as persistent dollar demand from hedgers weighed. The Reserve Bank of India's intervention through state-run banks limited the fall, with the currency moving within a narrow 3-4 paise band on Wednesday and ending about 0.1% higher.
Geopolitical uncertainty around the Strait of Hormuz and elevated US Treasury yields keep the dollar strong. India's retail inflation rose to 4.45% in July but remains within the RBI's target. Foreign inflows of about $1.8 billion in equities and $210 million in bonds in July provided support. Analysts say crude oil prices, US yields and global risk sentiment will drive the rupee's near-term direction.
The Indian Opinion
The rupee's narrow range this week shows RBI intervention is containing volatility, but narratives that this can continue indefinitely ignore the Strait of Hormuz risk. One disrupted tanker could spike oil prices and blow a hole in India's import bill. Foreign inflows help, but they are fickle. Watch the 95.80 level: a break above it would signal the RBI is losing the battle.
Source: livemint.com
This story was synthesised by AI from the source linked above.
