The Indian Rupee opened flat at 84.85 against the US dollar for second day in a row on Thursday. Domestic currency opened and closed flat earlier on Wednesday as well. It closed at 84.84, after opening at 84.85 on Wednesday.
This comes after the currency had weakened by 12 paise on Tuesday, closing at a record low of 84.85. The downward trend in the rupee has been persistent this week, with the currency dipping to 84.73 against the dollar on Monday.
The range of rupee is expected to remain between 84.77 to 84.97 on Thursday, as anticipated by Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors LLP.
Exporters may hold back their positions with a stop loss at 84.70, as the rupee remains under pressure due to sustained dollar demand, he added. Importers are advised to buy on dips
Bhansali noted that the rupee’s stability on Wednesday came amid positive signals from the newly appointed RBI Governor, Sanjay Malhotra, who emphasised stability, trust, and growth for the future. Additionally, the Reserve Bank of India has been intervening in the market by selling dollars to manage the rising demand from foreign portfolio investors, oil companies, and other importers.
On Tuesday, the rupee had slipped 13 paise to an all-time low of 84.86, reflecting ongoing concerns in the market. This adds to a string of recent struggles for the rupee, following a brief period of optimism last week.
The rupee had shown some signs of stability last week, aided by the RBI’s decision to maintain steady interest rates and introduce measures aimed at enhancing market liquidity. On Friday, the currency had strengthened by 3 paise to close at 84.70, providing a short-term reprieve.
The recent appointment of Sanjay Malhotra as the new RBI Governor marks a key development.
In response to the rupee’s struggles, the RBI has taken proactive steps to stabilise the currency and attract foreign investment. One such move includes raising the interest rate ceiling on one-year Foreign Currency Non-Resident deposits by 200 basis points, bringing it to 400 basis points. Additionally, the RBI has increased the ceiling on FCNRB deposits with 3-5 year maturities. These measures are designed to boost capital inflows and will remain in place until March 31, 2025.
. Read more on Markets by NDTV Profit.The range of rupee is expected to remain between 84.77 to 84.97 on Thursday. Read MoreMarkets, Economy & Finance, Notifications
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