RBI intervenes to prevent rupee from slipping past 80 to dollar

The rupee opened at 79.93 against the dollar on Friday, hitting an intraday low of 79.96, before recovering to close at 79.88

FPJ Web DeskUpdated: Saturday, July 16, 2022, 03:38 PM IST
article-image
Representative Image |

The Reserve Bank of India intervened in currency markets to ensure that the Rupee did not breach the psychologically crucial Rs 80 to the dollar mark in the spot market after the currency breached the barrier in the offshore and over-the-counter markets after market hours on Thursday, currency traders said.

The rupee opened at 79.93 against the dollar on Friday, hitting an intraday low of 79.96, before recovering to close at 79.88.

With the exception of Friday, the rupee marked a new closing low on every trading day this week as fears of a 100-basis-point rate hike by the Federal Reserve and the consequent strengthening of the dollar index eroded appetite for emerging market currencies.

With the Federal Reserve poised to hike rates by 100 basis points at its meeting towards the end of July, there is a high chance that the rupee will breach the 80 mark in the coming weeks.

Market participants will also follow US President Joe Biden’s visit to Saudi Arabia closely. Many expect him to push Saudi and Opec to pump more oil to reduce global crude prices, which have been stoking inflation worldwide.

The rupee, like almost all global currencies, has been depreciating and repeatedly hitting all-time lows, and the RBI has been using the country’s foreign exchange reserves to control the fall of the rupee. But despite all the attempts, the Indian rupee hit a new record low of 79.83 against the dollar yesterday.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

ICC announces maiden women's FTP, over 300 matches to be played between 2022-25

ICC announces maiden women's FTP, over 300 matches to be played between 2022-25

Veer Savarkar flex row: Karnataka police conducts flag march amid Section 144 imposed in Shivamogga;...

Veer Savarkar flex row: Karnataka police conducts flag march amid Section 144 imposed in Shivamogga;...

Mumbai updates: Shinde faction MLA threatens Sena workers; Thackeray supporters complain to police

Mumbai updates: Shinde faction MLA threatens Sena workers; Thackeray supporters complain to police

'Act of sabotage': Vladimir Putin after blasts, fire hits military depot in Russian-annexed Crimea

'Act of sabotage': Vladimir Putin after blasts, fire hits military depot in Russian-annexed Crimea

Karnataka: 'Govt not functioning, somehow managing', says minister in leaked audio; check out CM...

Karnataka: 'Govt not functioning, somehow managing', says minister in leaked audio; check out CM...
epaper
Do you wish to receive daily Epaper on your WhatsApp for FREE?
NO
Yes