RBI tightens FCNR swap deadline, rupee weakens

On August 17, 2026, the India — Indian rupee depreciated 17 paise to 95.59 against the US dollar in early trade, as investor sentiment turned cautious following the State Bank of India's decision to bring forward the cut-off date for its concessional FCNR (B) deposit swap facility. The RBI announced on August 14 that the facility would be available only for deposits mobilised until August 31, 2026, instead of the earlier September 30 deadline. The facility, introduced to encourage foreign currency inflows, had attracted $56.84 billion as of August 13. Forex analysts, including Amit Pabari of CR Forex Advisors, noted that while the inflows provided significant support, the market would eventually look beyond this temporary cushion, and the overall risk-reward tilted towards weakness. Technically, the 95.20-95.30 zone is seen as support, with potential movement towards 96.20-96.50. Meanwhile, the dollar index traded at 99.54, down 0.12%, and Brent Crude rose 0.47% to $88.94 per barrel. Domestic equities opened lower, with the S&P BSE Sensex declining 284.85 points to 77,717.05 and the NIFTY 50 falling 69.25 points to 24,297.05. Foreign institutional investors purchased equities worth Rs 508.12 crore on a net basis on Friday. India's forex reserves increased by $14.136 billion to $707.002 billion in the week ended August 7, following a $10.512 billion rise the previous week.