Reserve Bank of India schemes targeting foreign inflows may attract up to USD80 billion by year-end, easing Rupee strain amid oil price volatility.
The Indian Rupee held steady near 96.57 against the US Dollar on Friday, though it has faced upward pressure since early July due to rising oil prices. Analysts note that a recent pullback in oil costs could alleviate some pressure on the currency.
Recent measures by the Reserve Bank of India to boost foreign inflows through FCNR(B), ECB, and OFCB schemes are gaining momentum. These initiatives could draw up to USD80 billion by the end of the year, providing support amid broader economic challenges.
Trade policy risks persist, including a new 10% US tariff on Indian imports effective July 24. Meanwhile, July flash PMIs signal deepening economic moderation, with manufacturing resilience contrasting weaker service sector demand.