Rupee strongest in 10 weeks at ₹94.4850 per US dollar
Business
The rupee just closed at its strongest level in 10 weeks, ₹94.4850 per US dollar, after jumping 0.5% in a single day, its biggest gain since July.
This surge is mainly thanks to fresh dollar inflows through the RBI's special scheme.
RBI gains room amid import pressures
With more dollars coming in, the RBI now has extra room to manage the rupee's ups and downs.
As Kunal Sodhani, head of treasury at Shinhan Bank, put it, "The RBI can continue selling dollars on sharp USD/INR rallies, but use the abundant dollar supply to absorb dollars on deeper dips, rebuild reserves and manage the forward-book exposure."
Still, rising oil prices (thanks to U.S.-Iran tensions) and higher global interest rates are putting pressure on India's import bill and trade deficit.