Indian rupee sees marginal movement ahead of RBI policy review
2023.12.08 00:32
© Reuters.
MUMBAI – The Indian rupee experienced slight fluctuations this week as traders anticipated the Reserve Bank of India’s monetary policy announcement. On Friday, the currency appreciated by two paise to trade at 83.34 against the US dollar, buoyed by positive equity trends. Finrex Treasury Advisors noted that the rupee is expected to fluctuate narrowly due to balanced inflows and outflows.
In contrast, Thursday saw the rupee settle at 83.36 versus the dollar following significant share sales by Foreign Institutional Investors (FIIs), amounting to ₹1,564.03 crore (INR100 crore = approx. USD12 million).
The Monetary Policy Committee (MPC), led by Governor Shaktikanta Das, began discussions on Wednesday with expectations for interest rates to remain unchanged. This comes amidst a minor rise in the to 103.59 and an increase in prices to $75.31 per barrel.
The stock market responded positively, with the surging by over 229 points and the NSE Nifty by around 70 points. Previously, the rupee had appreciated by five paise on Wednesday, settling at 83.32 supported by the RBI’s efforts to maintain critical exchange rate thresholds.
Market participants are closely monitoring the outcome of the RBI’s review, which has implications for both domestic equities and the broader forex market. Meanwhile, Brent crude oil prices had dipped to a six-month low of $74.63 per barrel on Thursday, which traditionally supports the rupee’s value against stronger international currencies like the US dollar.
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