Rupee opens lower at ₹94.35 as Fed stays hawkish
The Indian rupee opened a bit lower at ₹94.35 per US dollar, mainly because the US Federal Reserve stuck to its tough stance on interest rates and signaled another possible hike this year.
Even with this small dip, the rupee has recently held up thanks to steady bond inflows and more two-way activity from importers and exporters, though activity still tilts more toward hedging by importers.
RBI reportedly bought $3-5 billion
Experts like Amit Pabari, managing director at CR Forex Advisors, think that easing oil prices and better inflows could help the rupee move toward ₹94 or even ₹93.80 soon.
The RBI has also been active, reportedly buying $3 billion to $5 billion over the last two sessions to keep things stable.
Still, global factors, especially oil prices and a stronger dollar, are keeping the pressure on for now.