This comes as the domestic currency has gained around 1.2% over the last six trading sessions as easing oil prices improved sentiment towards India, a major net importer of crude.
The US dollar index, which measures the value of the world’s reserve currency against a basket of global currencies, has indicated an improvement in the status of the US. The US dollar index, which started the week at 99.47, has improved to 100.91 as the week comes to a close
The Rupee has stabilised in the past month of trade, and the currency has improved its standing by over 2% in the past month. The Rupee has come down from the highs of its 96.57 against the US dollar.
The price of Brent Crude steadied at the low levels of under $80 per barrel, further aiding the Indian currency.
As per a Reuters report, although activity currently leans more toward importers’ hedging, they saw a rise in inflows into Indian bonds, a slowdown in outflows of foreign stock, and more two-way activity from importers and exporters.
This represents a change from the one-way dollar demand that has kept the rupee under pressure for a number of weeks, mostly due to importer purchases and persistent foreign outflows.
Rebalancing flows has been aided by India’s efforts to draw in dollar inflows and the drop in crude oil prices following the peace agreement between the United States and Iran.
