Rupee Gains as RBI Support and Inflows Lift Sentiment
The Indian rupee rose 0.2% to 95.1250 per dollar as likely central bank intervention and strong foreign bond inflows countered dollar demand from derivative maturities. Analysts expect recent policy measures could attract up to $70 billion in capital, significantly narrowing the national balance of payments deficit.
India's rupee rose 0.2% to 95.1250 per dollar on Wednesday morning as likely central bank intervention and bond inflows offset derivative market pressure. Foreign investors purchased over $1 billion in bonds since Friday, providing a critical buffer against dollar demand from maturing offshore contracts. This shift in capital flows is expected to narrow the national balance of payments deficit and stabilize the currency's near-term trajectory.
