Overview
- The rupee slipped below the 96 mark in early trade then staged an intraday recovery on Thursday, September 17, to settle 2 paise higher at 95.89 after hitting a low of 96.10.
- Early on Friday, September 18, the currency strengthened further to about 95.73 in morning trade before paring gains to close the day again at 95.89 (provisional).
- Forex traders and market reports say heavy dollar selling by banks on behalf of the RBI helped pull the rupee off its lows and calm immediate volatility in the spot market.
- External forces that drove the swings included a 25 basis‑point Fed rate increase and swings in Brent crude, with crude retreating below about $104 per barrel easing import‑related dollar demand.
- Sustained foreign institutional investor net selling of roughly Rs 3,208.76 crore and elevated global volatility leave the rupee vulnerable to renewed pressure, while Pakistan’s rupee moved only marginally in the same period.