The Indian rupee opened 6 paise higher at 96.72 against the US dollar on Friday (October 9), compared with Thursday’s (October 8’s) close of 96.78.
A pullback in the dollar and US Treasury yields offered some relief to the domestic currency, although elevated crude oil prices, foreign portfolio outflows and higher US yields continue to weigh on the rupee.
The Reserve Bank of India intervened in the foreign exchange market on Thursday to prevent the rupee from breaching its record low, traders said. Market participants expect the central bank to continue limiting sharp depreciation.
Meanwhile, Brent crude rose around 4% on Thursday (October 8), touching an intraday high near $106 per barrel, before easing after US President Donald Trump said Washington would not attack Iran before next month’s US elections, citing productive talks to end the conflict.
Rupee today: FAQs
FAQs
Why is the rupee under pressure?
Elevated crude oil prices, foreign portfolio outflows and higher US Treasury yields have weighed on the currency. Rising oil prices can increase India’s import bill and demand for dollars.
Did the RBI intervene to support the rupee?
Traders said the RBI intervened in the foreign exchange market on Thursday to prevent the rupee from breaching its record low.
What will influence the rupee’s movement?
Crude oil prices, movements in the US dollar and Treasury yields, foreign investment flows and the RBI’s intervention will remain key factors influencing the rupee.
