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Market move▼ Bearish for Indian equities
Rupee seen trading between ₹94.5 and ₹96 as dollar inflows offer limited support
The brief
- The rupee is expected to fluctuate between ₹94.5 and ₹96 against the US dollar
- FCNR deposit inflows have not significantly lifted the currency; RBI intervention and sentiment also shape movement
- A weak rupee raises imported-input costs for oil, aviation and other import-dependent Indian companies
- 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
- Forex reserves drop $14.9 billion to $766 billion, sharpest weekly fall since November 2024