Rupee Holds Steady at 85.47/USD as RBI Liquidity Signals Calm Waters

The Indian rupee opened nearly flat at ₹85.4725 per US dollar on June 30, reflecting a cautious yet stable currency environment amid global macroeconomic headwinds and domestic liquidity adjustments. The Reserve Bank of India (RBI) and government cash positions suggest a balanced monetary stance heading into July.

 

Key Highlights:

 

Currency Movement:

 

The rupee’s flat opening follows a week of mild fluctuations, with the RBI’s reference rate hovering between ₹85.40–₹85.85 throughout late June.

 

Liquidity Snapshot:

 

Banks’ cash balances with the RBI stood at ₹9.40 trillion as of June 27, indicating robust systemic liquidity.

The government’s surplus cash balance with the RBI was nil, suggesting active fund deployment or fiscal outflows.

The RBI extended ₹70.10 billion in refinance support, while banks borrowed a modest ₹750 million via the Marginal Standing Facility (MSF).

 

Market Sentiment:

 

Traders are watching for cues from upcoming US inflation data, crude oil price trends, and foreign fund flows, which could influence short-term rupee direction.

 

Outlook:

 

Analysts expect the rupee to remain range-bound in the near term, supported by strong forex reserves, moderate import demand, and RBI’s intervention buffer.

 

With the rupee showing resilience and liquidity metrics signaling equilibrium, India’s currency markets appear poised for a steady start to the new quarter.

 

Sources: Reuters, Bank of England Historical Rates, Economic Times