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Market move● Neutral for Indian equities
Rupee firms after RBI intervention as one-year forward yield reaches 3.50%
The brief
- Rupee ended at 95.81/$ after RBI intervention, easing oil prices and a softer dollar
- One-year forward yield climbed to 3.50%
- Rupee relief helps importers, while elevated forward premiums matter for banks and companies with foreign-currency exposure
- India forex reserves surge to a record high in September and to provide cover for 11.2 months of goods imports, says RBI
- India's forex reserves fall $14.89 billion to $766 billion
- Rupee and government bonds face pressure as oil rises and Iran diplomacy hopes fade
- FII Flows To Stay Subdued: Bernstein sees flat to modest inflows; rupee and valuations weigh
- RBI says resilient domestic economy cushions India against rising global risks