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.
It had settled at 75.65 against the US dollar on Friday.
Forex traders said risk appetite has waned amid spike in fresh coronavirus infections globally
It finally settled at 75.66 against the US dollar, registering a rise of 37 paise over its previous close of 76.03.
The rupee opened strong at 76.16 against the US dollar, and inched higher to touch 76.15 against the US dollar, up 5 paise over its previous close.
The 30-share BSE benchmark Sensex was trading 343.30 points higher at 34,551.35 and broader NSE Nifty rose 105.30 points to 10,196.95.
