Rupee marginally decreases: He Rupee On Tuesday, the dollar closed the day slightly lower, following the decline of other Asian currencies. However, it managed to hold above a crucial support level due to Dollar Sales by state banks.
He Rupee ended at 83.9750 against the US. Dollar a slight drop from its previous close of 83.9550. The currency could have seen a more significant fall if not for dollar bids from state banks, traders said. Last week, the rupee hit a record low of 83.9850.
Dollar The state banks’ bids were probably made on behalf of the Reserve Bank of India ( Reserve Bank of India ), although its impact was relatively mild, making it difficult to confirm, according to a senior trader at a foreign bank.
Reserve Bank of India Currency Management
In recent weeks, the Reserve Bank of India It has intervened regularly to stabilise the currency, keeping it within a narrow range of around 84 percent. Dollar Despite these efforts, a popular business strategy suggests that Rupee It may not experience a sharp depreciation even if it falls below the psychological support level of 84.
Asian currencies were generally weaker on the day, with the Korean won leading losses, down 0.2 percent. Dollar The index remained stable at 101.7.
Currency markets are currently in a “consolidation mode” ahead of the US presidential debate later today, ING bank said. “If a clear winner emerges from the debate, the currency market can be expected to start positioning for the election results expected in November,” the note added.
In related news, Dollar – Rupee Term premiums rose and the 1-year implied yield rose to 2.21 percent, the highest level since May 2023.(With contributions from Reuters)
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