India: Rupee Steady on RBI Support, Importer Demand.

The Indian rupee hovered around 95.5 per dollar, mostly trading in a tight range for the whole week as persistent Reserve Bank of India intervention and steady importer dollar demand kept the currency anchored. The rupee traded between 95.40 and 95.75 this week, as importer demand supported the lower end while RBI intervention limited downside. Oil prices near $90 a barrel have also been largely absorbed by the market, while the dollar remained steady near a one-week high ahead of Fed Chair Kevin Warsh’s closely watched Jackson Hole speech. Meanwhile, the RBI gave banks greater flexibility to swap dollars raised through FCNR(B) deposits, allowing transactions above $100 million outside their designated weekly window to manage a surge in dollar liquidity. The special deposit scheme has attracted more than $65 billion ahead of its August 31 deadline, strengthening the RBI’s ability to manage rupee volatility.