The Indian rupee experienced significant volatility in June, largely driven by the impact of elections, Foreign Portfolio Investor (FPI) outflows, and a rise in oil prices, which collectively strengthened the US dollar against the rupee, according to a report by Bank of Baroda.
The loan was approved after the IMF Executive Board completed its first review last week, bringing the total disbursements under the USD 3 billion Standby Arrangement (SBA) to about USD 1.9 billion.
As the IMF's $3 billion stand-by arrangement initiated its first review on Thursday, the Pakistani rupee experienced a declining trend against the US dollar, casting uncertainty on future prospects, Dawn reported on Thursday.
Banks from 22 countries have opened special Rupee vostro accounts in Indian banks in order to trade in local currency as part of gradual de-dollarisation plans, the Parliament was informed during the just concluded monsoon session of Parliament.
Banks from 22 countries have opened special Rupee vostro accounts in Indian banks in order to trade in local currency as part of gradual de-dollarisation plans, the Parliament was informed during the just concluded monsoon session of Parliament.
The foreign exchange companies had removed a cap on the Pakistani rupee-dollar exchange rate. This was a key demand of the IMF as part of a programme of economic reforms it has agreed on with the debt-laden South Asian nation.
Monetary policy tightening by various central banks to contain inflation, the war in Ukraine leading to price rise for crude oil and subsequent realignment in the global energy supply chain, and strengthening of the US Dollar index kept the Indian currency under pressure.
Indian stock indices traded higher during Tuesday's session and remained in the green for the second straight day. The benchmark stock indices - Sensex and Nifty - had witnessed losses for four days last week.
Sensex closed at 61,702.29 points, down 103.90 points or 0.17 per cent, whereas Nifty closed at 18,385.30 points, down 35.15 points or 0.19 per cent. Sensex and Nifty's intraday low was 61,102 points and 18,202 points respectively.
Sensex closed the session at 61,806.19, up 468.38 points or 0.76 per cent, whereas Nifty closed at 18,420.45 points, up 151.45 points or 0.83 per cent.
Typically, the RBI from time to time intervenes in the markets through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.
Replying to a question in Lok Sabha, Sitharaman said the Reserve Bank of India has used the available foreign exchange reserves that it had in order to intervene in the markets to make sure that the Dollar-Rupee does not fluctuate too much.