The Indian rupee was hovering around the 96-per-dollar mark on Wednesday with foreign portfolio outflows and continued dollar demand weighing on the currency, while the Reserve Bank of India’s intervention limited losses, Reuters reported.
The rupee was at 95.97 per U.S. dollar at 11:30 a.m. The rupee closed little changed at 95.98 on Tuesday. The currency was on course to end the month 0.8% lower and the quarter 1.3% lower.
After the spot market opened, State-run banks were seen selling dollars, likely on behalf of the RBI. The central bank has stepped in with intervention and its foreign exchange reserves to help cushion pressure from higher oil prices, higher global bond yields and foreign selling of Indian equities.
Foreign investors sold 99.8 billion rupees ($1.04 billion) of Indian stocks on Tuesday, their biggest net outflow in nearly four months, adding to demand for the US currency.
The rupee was also influenced by crude oil prices, which have remained above $100 a barrel on fears of supply disruptions in the Middle East.
