Rupee slides to 95.59 per dollar as RBI trims FCNR swap deadline
The rupee opened lower at 95.59 against the US dollar after the Reserve Bank of India moved up the cut-off date for its concessional FCNR (B) swap facility.
The Indian rupee began the week on a downbeat note, slipping to 95.59 per US dollar in early trade after the Reserve Bank of India announced a revised deadline for its concessional FCNR (B) deposit swap facility. Originally slated to run until September 30, the scheme will now close to new deposits on August 31, a shift disclosed on August 14. The RBI said the program had attracted $56.84 billion in foreign-currency inflows by August 13, providing a cushion for the currency.
Market commentator Amit Pabari of CR Forex Advisors noted that while the inflows have helped, investors may soon seek other support sources. He identified the 95.20-95.30 zone as a key technical floor, with the rupee possibly drifting toward the 96.20-96.50 band if that level holds. Meanwhile, the dollar index fell slightly, Brent crude rose, and Indian equity indices opened lower, while foreign institutional investors remained net buyers of domestic shares.
Why it matters
The RBI's deadline change could reduce foreign-currency inflows, pressuring the rupee and affecting Indian markets.
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