Indian rupee holds near 95.5 per dollar as RBI intervention limits moves

The Indian rupee remained near 95.5 per U.S. dollar during the week, trading between 95.40 and 95.75 after reopening from a Wednesday holiday. Reserve Bank of India intervention and lower-to-near-$90 oil prices supported the currency, while persistent importer dollar demand limited gains. The RBI’s increased flexibility to manage more than $65 billion in FCNR(B) deposits also strengthened its capacity to contain volatility. The dollar remained near a one-week high ahead of Fed Chair Kevin Warsh’s Jackson Hole speech, while expectations of a possible September Federal Reserve rate increase and foreign portfolio outflows continued to pressure the rupee.

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