Business · India Bureau
Rupee holds steady near 96 per dollar amid capital outflows
The Indian rupee remained largely stable against the US dollar on Tuesday, with Reserve Bank intervention helping to cushion the impact of ongoing foreign fund outflows. The currency traded at 95.97 per dollar in morning trading.
LSN India ·
The rupee held its ground near the 96 per dollar mark during mid-morning trading in Mumbai, registering minimal movement from the previous session's close at 95.98 per dollar. The stability comes despite persistent headwinds from foreign portfolio investor withdrawals, which have continued to pressure emerging market currencies.
The Reserve Bank of India's intervention in the forex market has played a key role in preventing sharper depreciation of the rupee. RBI's support has helped maintain a degree of stability even as global financial conditions remain challenging for emerging economies seeking to attract or retain capital flows.
Market participants expect the rupee to continue trading within a narrow band in the near term, contingent on the pace of capital outflows and the central bank's policy stance. The currency's resilience reflects a combination of supportive RBI action and underlying fundamentals, though external pressures from global monetary tightening and risk-off sentiment continue to weigh on sentiment.