Rupee rises to 94.27 after RBI gains around USD 136 Billion under capital raising measures

Mumbai, 3 September: India's rupee rose as the central bank raised $136 billion through capital-raising measures, exceeding expectations and increasing its war chest to defend the currency. On Thursday, the rupee rose by up to 0.7% to 94.2713 per dollar, the highest level in more than a month.

The pair is trading below its 100-day moving average, with traders expecting further gains as sentiment is boosted by the massive inflows.

The Reserve Bank of India (RBI) announced late Wednesday that lenders collected approximately $127 billion in dollar deposits through foreign currency non-resident (bank) FCNR (B) deposits in less than three months, with the scheme closing on August 31.

The inflows from two other programs totaled $9.15 billion. The combined haul exceeds the $80 billion estimate made by RBI Governor Sanjay Malhotra just last month.

The RBI announced the overseas fund-raising measures in early June to address outflows from India's capital markets, which had driven the rupee to successive record lows. That put additional strain on the country's import bill, which was already under pressure from rising oil prices as a result of the US-Iran war.