Rupee gains 15 paise to 95.81 after RBI dollar intervention
Business
The Indian rupee closed at 95.81 against the US dollar on Friday, gaining 15 paise after the Reserve Bank of India (RBI) stepped in and asked big public banks to sell US dollars.
This move helped the rupee recover, even as global oil prices hovered near $105 a barrel and India's need for foreign funds put pressure on the currency.
Swaps, exporters lift premium to 3.5%
To keep things steady, the RBI also used dollar-rupee swaps during the day, while exporters sold US dollars, pushing up the one-year forward premium to 3.5%.
Still, there are worries about India's external payments and changing capital flows; experts say keeping local interest rates in check is key for stability.