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Rupee strengthens near 94.28 per dollar on FCNR inflow surge
India mobilized $136.38 billion through the RBI’s FCNR deposit window, while a weaker US dollar trimmed pressure on USD/INR ahead of Friday’s NFP data.
The Indian rupee opened stronger against the US dollar on Thursday, extending gains toward 94.28 per dollar, according to FXStreet. The move was driven by increased foreign exchange mobilization in India through the Reserve Bank of India’s Foreign Currency Non-Resident (FCNR) deposit window.
FXStreet cited a Reuters report saying India attracted $136.38 billion through special foreign-currency mobilisation schemes, exceeding expectations, which boosted FX reserves and gave the RBI more ability to contain pressure on the currency. The report also noted that the RBI had been intervening in spot and Non-Deliverable Forward markets to limit one-sided, volatile moves amid geopolitical uncertainty.
FXStreet added that weakness in the US dollar further helped the USD/INR trade. The US Dollar Index fell sharply on Wednesday and extended its decline toward 99.28 in early Asian trading after ADP data showed the private sector created 38,000 jobs in August versus 47,000 expected, setting up investor focus on Friday’s Nonfarm Payrolls for cues on the Federal Reserve outlook.
In FXStreet’s technical view, USD/INR was trading around 94.48, with the pair holding below the 20-period EMA near 95.32 and the RSI(14) near 27.9 in oversold territory. Initial resistance is cited around the 20-day EMA near 95.32, while support is seen near the June 25 low at 94.16.
Latest closeDollar index 99.58 ▼0.1%