Rupee Flat at 95.71 Amid Strong Dollar & Geopolitical Tensions
By ThePip Desk
Indian Rupee remains stable at 95.71 against the US dollar, influenced by a strong dollar and escalating global geopolitical tensions. Forex reserves see a jump.
The Indian rupee traded flat against the US dollar in early Monday trade, holding its previous close of 95.71 from Friday. This stability occurred amidst a robust overseas dollar and persistent geopolitical tensions.
Key Currency & Market Figures
- Currency close (Friday): 95.71
- Intraday high: 95.72
- Intraday low: 95.64
- Forex reserves jump (week ended August 14): $9.905 billion to $716.907 billion
- RBI measures garnered (since June): nearly $73 billion
- FII equity offloading (Friday): Rs 542.71 crore
The partially convertible currency saw limited movement, touching an intraday high of 95.72 and a low of 95.64. Investors maintained caution, particularly due to anticipated new sanctions.
Geopolitical Headwinds Intensify
Washington is poised to unveil a fresh wave of sanctions targeting Iran, specifically its oil trade, banking network, and shipping routes. These geopolitical developments contribute to the prevailing cautious sentiment among investors.
Forex Reserves Offer Support
Despite external pressures, some support for the rupee emerged from India’s foreign exchange reserves. During the week ending August 14, these reserves increased by $9.905 billion, reaching a total of $716.907 billion, according to the Reserve Bank of India (RBI).
The RBI also confirmed that it had garnered nearly $73 billion through various measures introduced in June. These initiatives aim to strengthen the balance of payments and enhance the central bank’s capacity to support the rupee.
Foreign institutional investors (FIIs) offloaded equities worth Rs 542.71 crore on a net basis on Friday, as per exchange data, further reflecting a cautious market mood.