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Indian Rupee Rebounds as RBI Intervenes to Stabilize Currency
India Rupee shows strong rebound on firm RBI support
Image: The Economic Times
The Indian rupee strengthened to close at 95.69 per dollar on Friday, marking its first close above 96 in a week, due to aggressive intervention by the Reserve Bank of India (RBI). This move aimed to curb the currency's depreciation, which had approached 97 earlier in the week.
- 01The rupee traded between 95.67 and 96.31 during the day, providing importers a chance to hedge their exposure.
- 02Public sector banks were actively offering dollars, indicating significant market intervention by the RBI.
- 03Traders anticipate the rupee will fluctuate between 95 and 96 in the upcoming trading session.
- 04Asian currencies generally weakened, with the Korean won experiencing a 0.6% decline.
- 05The RBI's intervention is viewed as a long-awaited strategy to address rupee-negative positions in the market.
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On Friday, the Indian rupee appreciated to close at 95.69 per dollar, marking a notable recovery after nearly hitting 97 earlier in the week. This rebound is attributed to aggressive intervention by the Reserve Bank of India (RBI), which aimed to stabilize the currency amid market pressures. The rupee traded within a range of 95.67 to 96.31, allowing importers to hedge their positions effectively. Traders noted that public sector banks were actively selling dollars, a sign of the RBI's strong presence in the market. Looking ahead, dealers expect the rupee to continue trading between 95 and 96. In contrast, most Asian currencies weakened, with the Korean won leading the losses with a 0.6% drop.
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The RBI's intervention helps stabilize the rupee, which is crucial for importers and the overall economy.
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