The Indian rupee fell to a fresh lifetime low of 82.55 against the US dollar on Friday, exceeding the 82-mark for the first time amid weak global cues, ahead of US non-farm payrolls report to be released later in the day.
According to forex traders, the Reserve Bank of India has intervened and likely sold dollars through state-owned lenders in the session to control the domestic currency from sliding further, cited Reuters.
The Indian rupee dropped steeply to 82.33 against the greenback within just minutes of the day’s opening, after closing at 81.88/$1 in the previous session.
However, traders have noted that since hitting the record low on Friday, the domestic unit is seen as trading range bound, likely due to RBI’s intervention. Four bankers and a brokerage firm have confirmed RBI’s intervention in controlling the rupee's fall today stated the news agency.
"Basically, the RBI is making its presence felt and letting traders know once again that it will not allow one-sided moves," cited one of the state-owned banks confirming the intervention.
However, it added that the central bank’s interference would surely help the rupee to not tumble any lower but would not provide much aid in the domestic currency’s recovery.
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October 08, 2022
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