Suryaa Business Desk: Due to rising crude oil prices in the international market and withdrawal of foreign funds, the value of the Indian currency Rupee is under pressure... Indian currency rupee is under pressure due to rising crude oil prices in the international market and withdrawal of foreign funds. Market experts and traders said that the Reserve Bank of India (RBI) intervened in the foreign exchange market to stabilize the rupee exchange rate. It is reported that the RBI used public sector banks to sell the dollars so that the rupee did not depreciate further against the dollar.
Due to high global crude oil prices, India has to pay more foreign exchange for imports. This puts a serious burden on the domestic currency. Amidst these developments, foreign institutional investors withdrawing investments from Indian stock markets is another reason for the depreciation of the rupee, according to financial analysts. In order to protect the financial stability of the country, the Reserve Bank is closely monitoring the forex market from time to time and taking appropriate protective measures.
Economists say that the RBI has sufficient foreign exchange reserves to curb inflationary pressures and avoid unexpected fluctuations in the currency market. Movements in crude oil prices and geopolitical conditions will be crucial in determining the rupee's movements in the coming days. Traders opined that the fall in rupee value is temporarily contained due to the central bank's timely intervention.