Indian rupee rises to 6-week high against US dollar
The Indian rupee just climbed to its highest point in six weeks, reaching 94.29 against the US dollar before closing at 94.53, a 1.3% jump from June 4.
This boost comes from the RBI's new steps to bring in more dollars, a drop in global crude oil prices, and expectations of more overseas deposits flowing into Indian banks.
RBI raises FCNR(B) deposit interest rates
The RBI let banks offer higher interest rates on FCNR-B deposits (by 200 to 450 basis points) to attract money from Indians living abroad.
According to forex expert KN Dey, these inflows could pick up as soon as next week, giving extra support to the rupee.
Plus, with oil prices cooling off and less panic about supply problems, market vibes have improved.
Rupee still below late February levels
Even with this recent win, the rupee is still weaker than it was before late February's geopolitical tensions, but it's doing better than most other Asian currencies right now, says analyst with HDFC Securities Dilip Parmar.
Some corporate demand for dollars did trim gains a bit during trading.