Indian Rupee Held Strong Momentum on December 24 Following RBI’s Liquidity Measures

The Indian rupee strengthened by 12 paise to 89.51 against the US dollar in early trade on Wednesday (December 24), buoyed by a major liquidity infusion from the Reserve Bank of India (RBI) and weakness in the US dollar in global markets.

Forex traders noted that the rupee opened on a firm note following the RBI’s announcement of ample liquidity support for the markets, totaling around ₹3 lakh crore. This move is aimed at maintaining stability and curbing excessive rupee volatility.

Indian Rupee Strengthened

At the interbank foreign exchange market, the rupee opened at 89.56 against the dollar, later gaining ground to touch 89.51, marking a 12-paise appreciation from the previous close of 89.63 on Tuesday (December 23). During early trading, the currency briefly touched 89.65 against the US dollar.

Meanwhile, Brent crude, the global benchmark for oil, inched up by 0.02% to $62.39 per barrel in futures trading.

On the domestic equity front, the markets showed positive momentum. The 30-share BSE Sensex rose 63.82 points to 85,588.66, while the Nifty 50 gained 32.80 points to close at 26,209.95. Despite this, Foreign Institutional Investors (FIIs) sold equities worth ₹1,794.80 crore on Tuesday, according to exchange data.

RBI’s Liquidity Measures to Support Rupee

The RBI’s liquidity measures come in the form of government securities purchases worth ₹2 lakh crore and a $10 billion dollar-rupee buy/sell swap auction aimed at injecting funds into the banking system. These steps follow recent operations in which the central bank conducted ₹1 lakh crore in OMO purchases of government securities and a $5 billion dollar-rupee swap with a three-year tenor.

These initiatives underscore the RBI’s proactive stance in ensuring liquidity support and stabilising the rupee amid global uncertainties.

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