Rupee Holds Steady, RBI Liquidity Moves Signal Cautious Optimism in Markets

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The Indian rupee opened at 85.61 per US dollar on June 9, nearly unchanged from its previous close of 85.62, reflecting stability amid global currency volatility. Forex traders attributed the muted movement to monthend dollar demand from importers and oil companies, coupled with a firm US dollar index and subdued domestic equities.

Key Highlights:

Rupee Movement: The rupee opened at 85.54 and slipped to 85.61, weighed down by foreign fund outflows and global risk sentiment.

RBI’s Liquidity Snapshot (June 9):

Banks’ cash balances: ₹9.32 trillion
Government surplus cash with RBI (auctioned): ₹37.11 billion
Refinance operations: ₹83.22 billion
Marginal Standing Facility (MSF) borrowings: ₹21.23 billion
Market Sentiment: The RBI’s liquidity operations indicate a balanced approach to shortterm funding, while the rupee’s narrow movement suggests investor caution ahead of key global economic data.
Equity & Oil Trends: The BSE Sensex dipped over 500 points in early trade, while Brent crude edged up to $74.36 per barrel, adding pressure on the rupee.

Despite external headwinds, the RBI’s calibrated liquidity management and stable rupee opening reflect resilience in India’s financial system, even as global uncertainties persist.

Sources: Indian Express, Times of India, Deccan Herald.