The Indian rupee reached a remarkable milestone on Friday, closing at 85.97 against the US dollar, its highest point in over two months. This surge reflects a broader trend of strengthening for the rupee, especially as the dollar index showed stability. With anticipation building around the Reserve Bank of India’s upcoming buy-sell swap auction on March 24, market experts are keenly observing how the central bank will navigate its positions.
Rupee’s Steady Ascent
On Monday, the rupee opened slightly higher, gaining 3 paise to trade at 85.94 against the US dollar. Anil Kumar Bhansali, the head of treasury at Finrex Treasury Advisors, shared insights on the situation, stating, “The market is closely watching the RBI’s actions, especially in light of the recent discussions around currency manipulation concerns raised by US officials.” He predicts that the rupee could fluctuate within the 85.60 to 86.60 range in the near term.
Strong Weekly Gains
Remarkably, the rupee has recorded gains for eight consecutive sessions, culminating in its most substantial weekly appreciation in over two years. It appreciated by 1.2%, closing at 85.9725 against the dollar—retracing nearly half of its previous decline from 84 to 87.95. Abhishek Goenka, founder and CEO of India Forex & Asset Management, attributes this rally to robust foreign investments, including approximately $1.5 billion from the FTSE All-World Index rebalancing, alongside a boost in domestic equity sentiment.
External Market Influences
As of 8:55 a.m., Brent crude futures dipped slightly by 0.46%, trading at $71.83 per barrel. Meanwhile, the dollar index, which gauges the dollar’s strength against six major global currencies, remained stable at 104.10 during the Asian trading session.
Key Takeaways:
- Rupee closed at 85.97 against the US dollar.
- Anticipation around the RBI’s auction on March 24 is high.
- The rupee has gained for eight consecutive days.
- Weekly gains of 1.2% reflect strong foreign inflows.
As the market evolves, all eyes remain on the Reserve Bank of India’s next moves and the potential impacts on currency dynamics. For ongoing updates and detailed analysis, stay tuned to financial news platforms.
