The Reserve Bank of India (RBI) intervened in the foreign exchange market via dollar sales to avoid further depreciation of the rupee
More changes likely in liquidity management framework
A narrowing trade deficit in December, down to $21.94 billion down from a record $31.86 billion in November, further bolstered market sentiment
RBI's intervention policy unlikely to have changed
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.39 per cent lower at 109.38
The rupee declined 14 paise and touched the crucial 86.00-mark (provisional) for the first time against the US dollar on Friday as it failed to resist pressure from a stronger American currency and huge outflow of foreign funds. Surging crude oil prices overseas and negative sentiment in domestic equity markets also weighed down the Indian currency, forex traders said. Also, dollar strengthened on increased demand amid the anticipation of restrictive trade measures by the new US administration after Donald Trump takes over as president on January 20. At the interbank foreign exchange, the rupee opened at 85.88, hit the intra-day peak of 85.85 before settling at the lowest-ever level of 86.00 (provisional) against the greenback, 14 paise lower from its previous close. On Thursday, the rupee gained 5 paise to settle at 85.86 against the US dollar, recovering from the steep decline of 17 paise in the preceding session. Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said t
In the last three months, the rupee has depreciated 2.2 per cent against the dollar, which typically hurts consumer durable companies.
The local currency settled at Rs 85.78 per dollar on Friday
The rupee has been hovering above Rs 85 mark vis-a-vis the US dollar in the recent past
The rupee may touch the 86-per-dollar mark in the short term, said Jigar Trivedi, a senior analyst at Reliance Securities, who recommends buying the dollar-rupee pair on every dip
Despite the decline, India's foreign exchange reserves remain the fourth largest in the world
Despite last week's slump, the rupee has fared better than most of its Asian peers over the December quarter
Weakens below 85.8 intraday, RBI does rescue act
The local currency had settled at Rs 85.20 per dollar on Wednesday
The RBI's frequent interventions have supported the rupee in the face of multiple headwinds, including a hawkish shift in the Federal Reserve's outlook for policy rates over 2025, concerns about India
The rupee had settled at Rs 85.07 per dollar on Thursday
While the rupee touched a low of 84.7350 during the session, mild dollar sales from state-run banks helped avoid further losses, traders said
The currency has largely remained under pressure over the last two months on the back of heightened foreign portfolio outflows and a wave of dollar strength sparked by the Donald Trump's victory
The rupee fell 4 paise to all-time low of 84.76 against the US dollar in early trade on Tuesday, as the strength of the American currency in the overseas market and unabated foreign portfolio outflows dented investor sentiments. Forex traders said the depreciation in rupee was largely on the back of Donald Trump's rhetoric on BRICs currency, political instability in the Eurozone, weaker domestic macroeconomic indicators and unabated foreign portfolio outflows. President-elect Donald Trump on Saturday threatened a 100 per cent tariff on the BRIC bloc of nations if they act to undermine the US dollar. Moreover, market participants are also awaiting cues from the upcoming RBI monetary policy on December 6, which will likely focus on balancing inflation and growth. At the interbank foreign exchange, the rupee opened at 84.75 and moved in a tight range and touched all-time low of 84.76 against the greenback, registering a fall of 4 paise over its previous close. On Monday, the rupee ..
Dollar bids from foreign banks and importers weighed on the rupee, a trader at a private bank said. Other Asian currencies were mixed, while the dollar index trimmed losses after falling 0.7%