Today the Indian rupee opened at 85.77 against the US dollar. This level is close to the previous day and this indicates that the currency market started stable. However, experts say that if the Reserve Bank of India (RBI) had not been active in the market, the situation could have been different. The rupee could have come under pressure due to the strength of the dollar globally and fluctuations in domestic demand.
RBI’s activism
The Reserve Bank of India has intervened in the market in recent days to stop the fall of the rupee. According to sources, the RBI tried to keep the rupee stable by selling dollars. The move is aimed at preventing excessive volatility in the currency market and maintaining investor confidence. Experts believe that this move of the RBI has given stability to the rupee, which is a positive sign for the market.
Effect of global pressure
The dollar index remains around 105 in the global markets, which makes it clear that there is pressure on other currencies as well. The dollar is strengthening due to the possibility of a hike in interest rates by the US Federal Reserve. In this situation, it is challenging to keep the Indian rupee stable. Apart from this, the increase in crude oil prices and reduction in foreign investment can also have an impact on the rupee.
Future expectations
Analysts say that the condition of the rupee in the coming days will depend on how actively the RBI intervenes and how the economic conditions change globally. Also, if the growth rate in the Indian economy remains positive and the trend of foreign investors increases, then the rupee may strengthen. For the time being, investors are being advised to remain cautious.