The rupee opened 5 paise lower at 95.48 against the US dollar on Monday, 17 August, despite a weaker dollar, as the currency came under pressure after the Reserve Bank of India unexpectedly advanced the deadline for its discounted forex swap facility for non-resident Indian deposits.
The move came after weak US retail sales data reduced expectations of a Federal Reserve rate hike next month, weighing on the dollar.
The RBI said late Friday that it was bringing forward the deadline for the discounted forex swap facility by one month following more than $50 billion in inflows through non-resident Indian deposits.
Under the revised timeline, banks can access the zero-cost hedging facility for overseas foreign exchange deposits raised until 31 August, compared with the earlier 30 September deadline.
