Rupee breaches 72 mark against dollar for the first time; RBI intervenes

The currency fell to 72.12 a dollar in intra-day trade, but closed just below the 72-mark

The rupee crossed the 72-a-dollar mark on Thursday, but retreated on intervention by the Reserve Bank of India (RBI). 

The currency fell to 72.07 a dollar in intra-day trade, but closed just below the 72-mark. Many economists who were critical of the RBI not intervening were coming out in support of the central bank’s hands-off approach, in view of the volatility in other emerging markets (EMs). 

Finance Minister Arun Jaitley said on Wednesday there was no need for a knee-jerk reaction because of the rupee movement. 

“The rupee is moving because of global factors,” Jaitley said in an interaction with the media. Except