Rupee surges 84 paise against US dollar after RBI steps
The Indian rupee just had its best day in over two months, jumping 84 paise against the US dollar and closing at a one-month high below 95 per US dollar.
This boost came right after the Reserve Bank of India (RBI) rolled out new steps to attract more foreign investment and steady the currency during global uncertainty.
RBI eases investment and borrowing rules
To make India more appealing to overseas investors, the RBI relaxed tax rules for those buying government securities and made it easier to access sovereign bonds.
It's also offering smoother terms for foreign currency loans and plans to cut costs for some offshore borrowing.
Even with challenges like high energy prices, RBI Governor Sanjay Malhotra pointed out that India's economic fundamentals remain strong.
The central bank did tweak its growth forecast down a bit (to 6.6% for 2026-27) and expects inflation to be slightly higher at 5.1%, but with solid foreign exchange reserves covering about 11 months of imports, market confidence is up.