FCNR Inflows: Did They Save The Rupee From Hitting ₹100 Against The Dollar?

India’s massive FCNR inflows have provided a crucial cushion for the rupee amid rising crude oil prices and global uncertainty. Devarsh Vakil, Head of Prime Research, HDFC Securities, explains why the rupee’s stability should be assessed alongside the sharp rise in crude prices. He discusses how FCNR deposits may have prevented the currency from weakening towards ₹100 and why the impact could extend beyond immediate currency support. With these deposits typically having three- to five-year tenures, banks could gradually deploy the funds to support credit growth and profitability. The discussion examines how investors should measure the scheme’s success.