Forex experts have pointed out that the Indian rupee experienced a 5-paise increase against the US dollar, starting the day at 83.40 and later touching 83.39 in early trading. This uptick was seen as a result of the US dollar and crude oil prices pulling back from their previous highs, allowing the local unit to gain ground.
According to Anil Kumar Bhansali, the Head of Treasury at Finrex Treasury Advisors LLP, the Reserve Bank of India may have intervened by selling dollars to control the rupee's value, as evidenced by the drop in India's forex reserves by $5.401 billion to $643.162 billion for the week ending April 12. This action came after several weeks of reserve increases, leading to an overall rise in reserves to $648.562 billion in the previous reporting week.
Bhansali further commented that the RBI is expected to monitor the rupee's depreciation proactively, especially as oil companies and Foreign Institutional Investors (FIIs) continue to buy dollars. The dollar index, measuring the greenback's strength against other currencies, was reportedly trading lower at 106.07, while Brent crude futures declined to $86.63 per barrel. Additionally, the Indian stock market reflected positive movement, with the BSE Sensex climbing by 295.86 points and the NSE Nifty advancing by 106.00 points in early trading. Foreign Institutional Investors (FIIs) were reported as net buyers on Friday, purchasing shares worth Rs 129.39 crore as per exchange data.