Rupee Roars to 10-Week High as $136 Billion FCNR Bonanza Lifts Banks, But Nifty Eyes Fourth Weekly Loss

FCNR(B) Bonanza Reshapes Liquidity

The RBI's special forex swap window has pulled in a staggering $136.38 billion in FCNR(B) deposits, with HDFC Bank alone mobilising nearly $12 billion at 6.25% and IDFC FIRST Bank raising $3.57 billion equivalent to 11% of its deposit base. The inflows pushed the rupee to a 10-week closing high of 94.48/USD, up 49 paise, after opening 67 paise stronger at 94.30. Banking system liquidity surplus has consequently hit a 4.5-year high of Rs 7.76 lakh crore, triggering a broad rally in bank stocks even as the RBI now faces the task of managing this excess through reverse repo operations.