Overview
- The rupee settled unchanged at 94.46 against the US dollar after an intraday low of 94.57 and a recovery into the close.
- Traders said the currency’s flat finish signals near-term stabilisation following earlier sharp recoveries.
- India’s equity markets posted large gains with the Sensex jumping about 2,008 points and the Nifty rising roughly 576 points, which helped support the rupee.
- Foreign institutional investors were net buyers of equities to the tune of about Rs 7,284 crore, providing additional currency support.
- Analysts at Kotak NEO pointed to the RBI’s 5.50% repo rate and roughly USD 720 billion in reserves as buffers that allow orderly appreciation, though dollar moves and Brent crude around USD 96 a barrel keep volatility possible.