Rupee Resilience
The Indian rupee’s stability, despite external pressures from weak Asian currencies and rising US bond yields, highlights a nuanced approach by the Reserve Bank of India (RBI) in managing the currency.
The Indian rupee’s stability, despite external pressures from weak Asian currencies and rising US bond yields, highlights a nuanced approach by the Reserve Bank of India (RBI) in managing the currency.
The Indian rupee’s recent behaviour, hovering just shy of 84 a dollar, has been a focal point of discussion in financial circles. On Tuesday, the currency closed at 83.97, marginally above its previous alltime low of 83.9725, thanks to the Reserve Bank of India's (RBI) timely intervention.
BSESENSEX lost 1,449.08 points or 1.92 per cent to close at 73,961.31 points, while NIFTY lost 426.40 points or 1.86 per cent to close at 22,530.70 points.
There was a time when devaluation of a country’s currency was a national tragedy; devaluation of the Indian rupee in 1949, 1966 and 1991 caused widespread consternation, but with the adoption of floating exchange rates the rupee is devalued almost daily, with few people, if any, even noting the falling value of the rupee.
Markets were on a smooth course during the last week until a tsunami hit them on Wednesday. Even two trading sessions later what happened on that day remains a mystery.
During the session, the rupee witnessed an intra-day high of 74.98 and a low of 75.25 against the US dollar.
It opened lower at 75.23 per dollar against previous close of 75.14 and traded in the range of 75.15-75.29.
It had settled at 74.93 against the US dollar on Tuesday.
The domestic unit finally closed at 74.68 against the US dollar, down 2 paise over its previous close of 74.66 on Friday.
It opened 10 paise higher at 75.48 per dollar versus previous close of 75.58.
