Rupee Falls 17 Paise to 95.59 Against US Dollar in Early Trade
Forex traders said sentiment turned cautious after the central bank limited its concessional swap facility to FCNR(B) deposits mobilised by Aug. 31.
- On Monday, August 17, 2026, the rupee depreciated 17 paise to 95.59 against the USD in early trade as the overall risk-reward appears tilted towards weakness.
- The Reserve Bank announced the FCNR swap facility will be available only for deposits mobilised until August 31, 2026, shortening the previous September 30 deadline.
- After attracting nearly $50 billion in inflows, the central bank's decision triggered cautious investor sentiment; Pabari noted the 95.20–95.30 zone should act as important support for USD against the INR.
- Domestic equity markets saw declines as the Sensex dropped 284.85 points to 77,717.05, while Brent crude oil prices traded higher by 0.47% at $88.94 per barrel.
- India's forex reserves jumped $14.136 billion to $707.002 billion during the week ended August 7, providing a cushion despite recent currency pressure.
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Rupee falls 17 paise to 95.59 against US dollar in early trade
In early trading, the rupee slipped by 17 paise against the US dollar as investor sentiment turned cautious following the Reserve Bank of India's announcement on its swap facility adjustment. The end of the FCNR (B) deposit facility on August 31 is causing concern among traders, even though prior forex inflows had reached nearly USD 50 billion, suggesting potential short-term support for the rupee.
Rupee opens 5 paise lower at 95.48 against US dollar
The rupee opened lower at 95.48 against the US dollar, pressured by the RBI's early deadline for forex swap facilities. Despite weaker dollar expectations, geopolitical risks and domestic factors could add volatility, with experts warning of potential weakness ahead.
Higher costs, rupee pressure forced premature closure of FCNR-B window, say experts
The RBI said on August 14 that the swap facility for FCNR-B deposits will be available for new deposits up to August 31 due to a strong response.The scheme was to earlier close on September 30
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