The Indian rupee closed at 89.45 per US dollar, down 0.8% in a single day. Traders indicated that the Reserve Bank of India likely intervened near the 89.50 mark to curb volatility. The move highlights RBI’s active role in stabilizing currency amid global market pressures.
The Indian rupee witnessed sharp depreciation on Friday, settling at 89.45 against the US dollar, marking a 0.8% decline. Market participants reported heavy dollar demand from importers and global investors, which exerted pressure on the currency. Traders suggested that the Reserve Bank of India (RBI) stepped in around the 89.50 level to arrest further weakness, deploying intervention strategies to stabilize the exchange rate.
Key highlights
The rupee fell 0.8% on the day, closing at 89.45 per US dollar.
Heavy dollar demand from importers and global investors contributed to the slide.
Traders indicated RBI likely intervened near 89.50 to prevent sharper depreciation.
Intervention strategies included dollar sales from reserves to balance market flows.
The rupee’s weakness reflects broader global trends, including strong US dollar demand and geopolitical uncertainties.
Currency analysts expect RBI to remain vigilant, using reserves to manage volatility while balancing inflationary pressures.
Sources: Reuters, Economic Times, Business Standard.