The Indian Rupee opened stronger on Wednesday (October 14) as the Indian currency looks to build on the recent momentum, riding on RBI measures.
The Indian currency opened at 95.01 per US dollar, compared to Tuesday’s (October 13) close of 95.28. The Rupee further strengthened, slipping below the 95 mark for the first time since September 8, 2026.
In addition, the 10-year bond yield stands at 6.94%, last price at 97.02.
India’s recent foreign-exchange interventions are designed to mitigate speculative activities. Although the Reserve Bank of India (RBI) does not typically employ monetary policy as a mechanism for maintaining financial stability, these two dimensions remain interconnected, RBI Governor Sanjay Malhotra said while speaking to Moneycontrol on Tuesday.
Since October 10, the RBI has implemented a comprehensive set of rigorous measures, encompassing the redirection of petroleum companies’ dollar acquisitions to a dedicated facility and the imposition of cash reserve requirements on foreign exchange hedging instruments related to import obligations and financial institutions’ respective assets and liabilities.
Malhotra emphasised that the central bank’s interventions constitute regulatory measures rather than capital restrictions, with the objective of facilitating legitimate hedging requirements while discouraging speculative transactions.
He further indicated that the regulator maintains readiness to implement supplementary measures to facilitate controlled fluctuations in the rupee’s valuation.
When we look at the markets, the US markets closed with cuts after returning post a long weekend; the Asian markets are looking up and look set to turn the table, especially with KOSPI rising over 1.70%. The GIFT Nifty is trading lower, possibly denting the major gains in yesterday’s Nifty weekly expiry session.
Meanwhile, another critical element moving the currency markets, Crude has once again climbed to higher peaks, jumping to the $106 mark.
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