New Delhi, April 10: On Friday, the Indian Rupee opened stronger against the US Dollar, gaining nearly 10 paise. This rise is attributed to the approaching deadline set by the Reserve Bank of India (RBI) for banks to unwind their arbitrage positions. Traders are also closely monitoring the rising crude oil prices amid uncertainty surrounding the US-Iran ceasefire.
In early trading, the Rupee was trading at 92.57 against the US Dollar, compared to the previous closing level of 92.66.
April 10 marks the final date for banks to close their excess positions in the offshore non-deliverable forward (NDF) market. Earlier in March, the RBI instructed that banks’ net open positions in Rupees should not exceed $100 million at the end of each trading day. Despite several banks requesting an extension, the central bank maintained its stance, forcing banks to reduce their arbitrage positions.
Analysts suggest that the market may remain in a ‘wait and watch’ mode until there is clarity on the RBI’s overnight position limits. They also noted that concerns about a sharp decline in the Rupee post-deadline may be overstated.
Meanwhile, global crude oil prices remain on the radar for investors and traders. Brent crude was trading at $97 per barrel, up 1.13% from the previous close. WTI crude also saw an increase of over 1%, reaching $99.24. Earlier, prices had dropped nearly 20% from the $100 per barrel mark.
On the Multi Commodity Exchange (MCX), crude oil futures for April 20 reached an intraday high of ₹9,222, reflecting a gain of 3.23% or ₹289.
Earlier this week, RBI Governor Sanjay Malhotra stated that the restrictions on banks’ foreign exchange positions and the ban on clients from engaging in non-deliverable forwards are temporary measures aimed at controlling market volatility. He also mentioned that the foreign exchange market has experienced significant fluctuations in recent weeks, partly due to arbitrage trades conducted by banks.
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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