Noida, July 24 (APAC Media): The Indian rupee appreciated by 22 paise to 96.51 against the US dollar in early trade on Friday, supported by easing demand for the greenback and likely intervention by the Reserve Bank of India (RBI), dealers said.
According to forex traders, the domestic currency opened on a firm note after state-run banks were seen selling dollars, a move widely perceived as RBI intervention to contain excessive volatility in the foreign exchange market.
“The RBI appears to have stepped in through public sector banks to smooth volatility in the rupee. However, elevated crude oil prices and persistent global uncertainties continue to pose downside risks,” a forex dealer said.
Market participants noted that the rupee also drew support from improved risk sentiment, although gains remained capped due to sustained demand for dollars from oil marketing companies amid higher crude prices.
“The rupee may remain range-bound in the near term. Any further movement will largely depend on crude oil prices, foreign fund flows and the RBI’s approach towards managing volatility,” Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors, said.
Despite Friday’s recovery, traders said the domestic currency remains under pressure as rising crude oil prices and geopolitical tensions have increased concerns over India’s import bill and inflation outlook.
The RBI has maintained that its interventions in the foreign exchange market are aimed at curbing excessive volatility and ensuring orderly market conditions, rather than defending any specific exchange rate.
–ENDS–
Disclaimer:Â This article is for informational purposes only. APAC Media is not liable for any investment decisions or losses. Please conduct your own research or consult a financial advisor before investing.
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