Rupee Reverses Early Gains As Central Bank Deadline Looms

Mumbai, April 10:The rupee reversed early gains oil on Friday as a deadline loomed by the end of the trade for banks to unwind their arbitrage positions and signs of strain showed in the US-Iran ceasefire a day ahead of scheduled talks between the ‌two parties.

The Reserve Bank of India’s deadline to limit banks’ daily open positions to $100 million takes effect at the end of today’s trade.

The rupee was seen trading weaker against the dollar, down 0.08% at 92.745 to the greenback.

It also declined marginally against the pound, down 0.03% at 124.25, and fell slightly against euro, down 0.06% at 108.24.

However, the rupee rose against the yen, up 0.22% at 0.58.

Opening Higher

At the start of the trade, the rupee had opened marginally higher against the dollar. Asian currencies were seen trading mixed asthe Malaysian ringgit rose 0.31 per cent and the Taiwan dollar gained 0.21 per cent while the Philippines peso edged up 0.03 per cent. On the other hand, the Thai baht fell 0.42 per cent, the South Korean won slid 0.34 per cent, and the Indonesian rupiah fell 0.17 per cent.

The dollar index remained stable near 99, and Brent crude traded around $96.50 per barrel.

On Thursday, the rupee had settled at 92.6575 versus the dollar, falling modestly and snapping a four‑day winning streak.

Best Performer

Overall, the currency has gained 2.5% since the first curbs were declared on March 27 by the Reserve Bank of India aimed at cracking down on speculation. In doing so, it hasrun pastAsian peers such as the Thai baht and South Korean won, becoming the best performer in Asia. The rupee also seems headed for a second straight week of gains.

The centralbank’s deadline to limit banks’ daily open positions to $100 million takes effect at the end of today’s trade. The Reserve Bank of India has also banned lenders from offering non-deliverable rupee contracts to clients. The restrictions aimed at bolstering the rupee have coincided with a temporary ceasefire in the Middle East.

Source: https://economictimes.indiatimes.com/markets/forex?utm_source=chatgpt.com