INSUBCONTINENT EXCLUSIVE:
After weakening to a fresh intraday low against the US dollar on Thursday, the rupee recovered smartly to end the day 0.3 per cent
stronger versus the greenback after the Reserve Bank of India (RBI) intervened to support the local currency, dealers said.
The rupee
closed at 82.76 per dollar on Thursday as against 83.02 per dollar on Wednesday
In the course of trade, the domestic currency weakened to a fresh intraday low of 83.29 per US dollar
currency having depreciated more than 1 per cent since Tuesday, dealers said the RBI might have stepped up sales of dollars on Thursday to
prevent excessive volatility in the exchange rate.
Dealers said the central bank likely sold more than $1 billion in the spot market on
Thursday, a day after it was reported to have not intervened much, which the dealers said was a key reason for the rupee breaching the 83
interest rate derivatives at Kotak Securities, told Business Standard.
Dealers said the RBI stepped up interventions in the latter part of
central bank intervention and recovery in the Chinese yuan
range of 81.90-83.50 per dollar for the rupee.
Over the past couple of weeks, the central bank is said to have significantly increased
interventions through dollar sales in the forwards segment as against the spot market.
By doing this, the RBI prevented rapid declines in
the levels of headline reserves, analysts said
some members of the Federal Reserve strengthened expectations of aggressive rate hikes by the American central bank next month and the month
after.
The US dollar index, which measures the greenback against six major currencies, was at 112.86 at 3:30 pm IST on Thursday as against
112.47 at the same time on Wednesday
by the US Fed on November 2
