Stable oil prices, a decline in the dollar index, central bank liquidity support, and probable forex market interventions are just a few of the factors that have caused the Indian Rupee to rise more than 1% this week, continuing its winning streak into its eighth session and ending its best weekly performance in two years.
Concerning the US dollar, the rupee ended the previous session at 86.3675 and now stands at 85.9725. The session saw it reach a 10-week high of 85.9375, and it gained 1.2% over the week. Since January 9, when the rupee was trading close to 85.8638 versus the US dollar, this has been the greatest level for it.
Experts have stated that the Reserve Bank of India’s (RBI) USD/INR Buy/Sell swap auction and the central bank’s frequent interventions have contributed to the Indian rupee’s recent surge in value.
In February, India’s trade deficit shrank to $14.05 billion, creating an unusual $4.5 billion total trade surplus. January saw a deficit of around $23 billion. The trade imbalance in products was also less than $19.51 in February 2024 on an annual basis. Due to a drop in imports and a very stable export market, the Commerce Ministry reported that the February deficit was the lowest since August 2021.
Merchandise imports dropped 16.35 percent to $50.96 billion in February, while merchandise exports declined 10.9 percent year-over-year to $36.91 billion, according to preliminary statistics issued by the commerce ministry on March 17.
