The Indian rupee slipped to around ₹95.56 against the US dollar on Friday, August 28, as persistent dollar demand from importers and month-end payments weighed on the domestic currency during early trading.
The rupee was quoted at approximately ₹95.5625 per US dollar, compared with its previous close of ₹95.54. It had opened near ₹95.51 before moving within a relatively narrow trading range.
Currency traders said there was no single major trigger behind the weakness. Instead, regular dollar purchases by importers, combined with month-end payment requirements, continued to create an underlying demand for the US currency.
The rupee has remained largely range-bound in recent sessions, with traders focusing on relatively small intraday movements rather than taking major directional positions.
Pressure on the domestic currency has also been influenced by global risk sentiment, crude oil movements and fluctuations in the US dollar. Importer demand tends to increase pressure on the rupee because Indian companies purchasing goods and commodities from overseas need dollars to settle their transactions.
However, the rupee later recovered during Friday’s session as additional dollar inflows emerged. It eventually closed at ₹95.3775 per US dollar, gaining around 0.2% on the day and about 0.3% for the week.
The recovery was supported by increased dollar supply ahead of the closure of the Reserve Bank of India’s special non-resident deposit-related facility, along with inflows linked to MSCI index rebalancing and dollar offers from state-run banks.
Market participants are expected to continue tracking global crude prices, US monetary policy expectations, importer demand and RBI-related flows for further direction in the rupee.
source – Reuters
Supreme News Network
