Image Source: Business Standard
On July 17, 2025, the Indian rupee opened marginally stronger at 86.0125 per US dollar, up 0.1 percent from the previous close of 86.0750. The currency movement reflects cautious optimism amid evolving liquidity dynamics.
Key highlights from RBI’s money market operations:
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Banks held cash balances of Rs 9.70 trillion with the Reserve Bank of India, indicating robust liquidity buffers
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The central bank reported zero surplus government cash balance available for auction, suggesting tight fiscal deployment
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RBI extended Rs 58.57 billion in refinance support, aimed at easing shortterm funding pressures
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Indian banks borrowed Rs 8.08 billion via the Marginal Standing Facility (MSF), a window used during liquidity stress
The MSF usage and refinance activity point to selective liquidity absorption, while the rupee’s modest gain signals resilience amid global uncertainties. Traders are watching upcoming US data and domestic fiscal cues for further direction.
Sources: Reuters, RBI Press Releases, Economic Times, Business Standard, Livemint, Moneycontrol, MSN India
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