New Delhi, July 21: The five-session losing streak of the Rupee ended today, aided by easing crude oil prices and stronger-than-expected foreign exchange inflows under the Reserve Bank of India’s (RBI’s) recent measures to shore up the country’s foreign exchange reserves.
The Rupee settled at 96.24 per US dollar against the previous close of 96.45 per dollar, after touching an intraday high of 96.13 per dollar.
Despite the recovery, the rupee remains down over 10 per cent from a year ago and is the worst-performing major Asian currency over the period.
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Market participants said the decline in crude oil prices after reports of diplomatic efforts between the US and Iran improved sentiment, while intermittent dollar sales by the RBI capped losses.
Demand for the greenback from oil marketing companies and other importers, however, continued to keep appreciation in check.
Supporting sentiment, the RBI on Tuesday said its measures announced in June to attract foreign capital had mobilised $20.72 billion between June 8 and July 17.
The update marked the first official disclosure on inflows under the package, which included a concessional swap window for FCNR(B) deposits and external commercial borrowings, relaxation in reserve requirements, and tax exemptions on select foreign investments in government securities. Of the total inflows, $17.4 billion came through FCNR(B) deposits. (BVI)
