RBI Probably Sold Dollars To Protect The Currency From Reaching A Record Low: Traders
RBI Probably Sold Dollars To Protect The Currency From Reaching A Record Low: According to six traders who spoke to Reuters, the Reserve Bank of India probably sold dollars through public sector banks to prevent the rupee from hitting a record low.
The rupee was down around 0.1% from the previous session, quoted at 83.0250 to the dollar. Before the regular OTC opening hour of 9.00 a.m., the rupee had depreciated to 83.16 on the interbank order matching system.
The RBI probably traded dollars in order to get the rupee back up to 83.
According to Ritesh Bhusari, deputy general manager for treasury at private sector lender South Indian Bank, the RBI seeks to reduce volatility and lopsided changes in the rupee.
It will be challenging for the rupee to go below 83.25 after the RBI intervened in the foreign exchange market, in our opinion. The rupee’s all-time low was set in October of last year at 83.29.
Despite having a declining bias toward the rupee, mostly because of movements in the dollar and other Asian currencies, Bhusari said that the RBI’s action will moderate the rate of depreciation.
According to a senior trader at a private sector bank, the RBI wanted to make sure that expectations of their allowing the rupee to drop to a record low were cut short immediately.
Follow For More Such Business, Finance And Stock Market Updates On Regular Basis : Check Here