Rupee Set to Open Higher Following RBI Position Limits
The rupee is set to open higher as central bank curbs on speculative trading support the currency. Rising oil prices and foreign outflows temper the outlook.
The currency of India is expected to strengthen as markets open on Monday, driven by the lingering impact of recent regulatory interventions by the central bank. Traders anticipate the rupee will start the session between 92.80 and 92.90 against the dollar, an improvement from its previous close of 93.10 on Thursday.
Last week, the domestic currency recorded its strongest performance in over four years, surging 1.8%. This rally followed the Reserve Bank of India’s decision to implement strict position limits on financial institutions and corporations, a move designed to stifle arbitrage between onshore markets and non-deliverable forwards (NDF). These measures forced banks to unwind their positions, resulting in significant dollar sales within the domestic market.
