World · India Bureau
Rupee strengthens to two-month high against dollar on RBI scheme inflows
The Indian rupee has climbed to its strongest level in over two months against the US dollar, bolstered by significant foreign exchange inflows from a Reserve Bank of India initiative. The RBI's forex scheme has attracted $136.37 billion in foreign reserves through August 31.
LSN India ·
The Indian rupee demonstrated renewed strength on Tuesday, appreciating to its highest level in more than two months against the US dollar amid broader capital inflows into the economy. The currency's recent rally reflects growing confidence in India's economic fundamentals and external position.
A significant contributor to the rupee's appreciation has been the Reserve Bank of India's foreign exchange accumulation scheme, which has proven effective in attracting overseas capital. The initiative has garnered $136.37 billion in foreign reserve inflows through August 31, providing substantial support to India's external account.
The scheme represents the central bank's effort to bolster foreign exchange reserves at a time when global financial conditions remain fluid. The consistent inflows have enabled the RBI to build buffers while simultaneously allowing the rupee to reflect underlying economic strength.
Analysts view the rupee's appreciation as a positive signal for the Indian economy, though the RBI continues to monitor currency movements closely to ensure stability in financial markets. The combination of policy support and organic capital flows underscores India's position as an attractive destination for foreign investment in the region.