Rupee Recovery: Influences Behind the 12-Paise Rebound
The rupee gained 12 paise against the US dollar, reaching 88.68, after the RBI announced measures supporting exporters. The central bank left the repo rate at 5.5%, boosting market strength alongside declining crude oil prices. Analysts predict further gains for the rupee amid a weak US dollar.
- Country:
- India
The rupee rebounded by 12 paise from its record low, closing at 88.68 against the US dollar, after the Reserve Bank of India unveiled several measures to stabilize the currency and assist exporters.
The Reserve Bank's decision to maintain the repo rate at 5.5% and a neutral policy stance bolstered market confidence. In addition, falling crude oil prices and the central bank's support for exporters strengthened the domestic currency, according to forex traders.
Analysts at Mirae Asset ShareKhan suggest the rupee could continue to appreciate due to the RBI's strategic actions and a weakening US dollar, amidst concerns over the US government's partial shutdown and lower consumer sentiment.
(With inputs from agencies.)
Advertisement
Google News