# Rallying rupee is RBI's insurance policy for unpredictable times

> The rupee posted its sharpest rally in almost a year, gaining 1.9% against the dollar over three weeks. The Reserve Bank of India bought dollars to build reserves, adding $1.6 billion in the week through 3 February. Stock and bond inflows and a fiscally prudent budget supported the rally.

- Date: 2017-02-14 · published 2017-02-14T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/72793-rallying-rupee-is-rbi-s-insurance-policy-for-unpredictable-times
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

A stronger rupee lowers the local-currency cost of dollar-denominated imports, while central bank dollar buying limits how far the rupee can appreciate. The net effect is a mildly bearish signal for USD/INR.

## Read by commodity

- USDINR: bearish ▼

## Sources

- livemint.com: https://www.livemint.com/Money/5Mmdz78rABRC3utQ3WI2rK/Rallying-rupee-is-RBIs-insurance-policy-for-unpredictable-t.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.