In the past 10 days, the rupid has weakened around 114 Paise
The rupid could not stick to early profits on Monday that arise from the weakness of dollars, with a continuing demand for the greenback of oil companies and foreign fund outflows that weigh.
This was among the constant uncertainty with regard to the impact of the 25 percent rates on Indian export.
Market players say that the RBI has allowed the six -month $ 5 billion USD/INR Buy/Sell Swap that it performed on January 31, 2025, to mature. This will probably stimulate the liquidity of dollars to that extent and support the rupid.
The Indian currency closed at 87,6550 per USD, about 12 Paise towards the end of Friday of 87,54.
In the last 10 days, the rupid has weakened around 114 Paise from the 86.52 closing level on July 25 (Friday) so far.
The Reserve Bank of India (RBI) had performed a USD/INR -WAP auction of $ 5 billion/INR on January 31, 2025, as part of its efforts to deliver sustainable rupidity in the banking system, which was subsequently wrapped under a deficit. As soon as the swap ripens, the opposite – RBI sells dollars and sucks rupee -liquidity.
V Rama Chandra Reddy, Head – Treasury, Karur Vysya Bank, noted that with abundant rupees – Liquidity (from approximately RS 4 Lakh Crore), so that the Swap can grow up, not much of a dent about the overall liquidity of the banking system. The SWAP will strengthen dollar liquidity with banks for an amount of $ 5 billion.
Some banks, those who have used FCNR (B) deposits in the USD/INR buy/sell swap with RBI, can choose to sell/buy a USD/INR -Swap with counterparte banks if they want to stimulate rupee funds, he said.
Dilip Parmar, senior research analyst, HDFC Securities, said that the Indian rupid was weakened in six of the last seven days, mainly as a result of foreign fund expansions and liquidity adjustments by the RBI after the term of a $ 5 billion USD/INR -WAP.
The forward premium also jumped to reflect the potential interest difference between the US and India after the baneng data of Friday of us.
Parmar said that the location USD/INR pair has a resistance level in the short term at 87.70 and support at 87.30.
Published on August 4, 2025
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