Rupee closes at 95.81 after RBI urges banks sell dollars
Business
The Indian rupee ended Friday stronger at 95.81 against the US dollar, thanks to the Reserve Bank of India nudging public banks to sell US dollars and steady the ship.
This move helped offset worries about high global oil prices, raising the risk of imported inflation.
Dollar-rupee swaps absorb liquidity, yields climb
To keep things stable, the RBI also used dollar-rupee sell-buy swaps to absorb rupee liquidity from the inter-bank system.
Meanwhile, India's 10-year bond yield jumped to a four-month high at 7.14%, echoing a worldwide trend as the US Japan, and Germany all saw their own yields rise too.
Rupee gets modest extra boost
Besides gaining on the US dollar, the rupee also got a little boost.