Rupee slips to 95.97 as state-run oil companies demand dollars
The rupee dipped slightly on Wednesday, falling to 95.97 against the US dollar, down by just 3 paise.
This slip mainly happened because state-run oil companies needed more US dollars, and global crude oil prices kept climbing.
Still, the rupee managed to stay just below the key 96 mark.
RBI intervenes as reserves drop $14.9B
To keep things steady, the Reserve Bank of India has been actively working through state-run banks to prevent the rupee from crossing 96 per US dollar.
This effort is visible in a $14.9 billion drop in India's reserves, now at $766 billion.
According to Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities, strong US yields and foreign investors pulling out cash have added pressure too.
Sensex up 190, Nifty up 22
Even with these currency headwinds, Indian stock markets stayed upbeat, Sensex rose by 190 points and Nifty by 22 points early today, showing that investor confidence at home remains strong for now.