The Indian rupee began the week on a positive note on Monday, April 6, buoyed by the carryover impact of the central bank’s recent measures, although ongoing demand for oil and selling by foreign investors might dampen the overall mood. The rupee started off at 93 against the U.S. dollar, following its close at 93.10 on Thursday, according to traders. Indian financial markets were closed on Friday on account of Good Friday.
The Indian rupee surged by 1.8% last week, marking its strongest performance in more than four years, following the Reserve Bank of India’s implementation of position limits on banks and corporations, which restricted onshore-NDF arbitrage activities.
This prompted a reduction of bank positions, resulting in the selling of dollars in the onshore market. Banks are required to reduce their positions to the levels set by the RBI by April 10.
