RBI’s Foreign Currency Scheme Spurs $127bn Inflow, Strengthens Rupee

According to the latest RBI statistics, foreign currency non‑resident (B) deposits reached $127.226 billion as of August 31, 2026. This inflow eclipses the RBI’s earlier estimate of $100 billion and has been a key driver behind the rupee’s appreciation to 67 paise against the dollar. In addition, the bank recorded $3.891 billion in external commercial borrowings and $5.260 billion in overseas foreign‑currency borrowings. The RBI’s targeted swap facility, launched on June 8, allows investors to access FCNR (B), ECB and OFCB channels, providing liquidity and stability to the domestic market. Analysts suggest that the rupee may trade between 94.10 and 95.50 in the coming weeks, with a downside risk to 93.50 if the lower boundary is breached. The strengthened foreign‑exchange reserves give the RBI latitude to counteract any severe depreciation pressures while continuing to augment its FX reserves.