The rupee crossed 81 per dollar for the first time on Friday before rebounding below that level when the Reserve Bank of India intervened, but the day still ended at its weakest level as the dollar moved to a new 20-year high. propelled.
Bloomberg showed the rupee was last at 80.9738 per dollar, after hitting an all-time low of 81.2438, compared to its previous close of 80.8688, the weakest close to date.
PTI reported that the domestic currency fell 25 paise to temporarily close at a new all-time low of 81.04 against the US dollar.
Traders credited the rupee’s recovery from its record lows to the RBI, which likely sold dollars to halt the dramatic decline in the domestic currency after the rupee held up remarkably in the face of a rampant dollar until Thursday’s crash.
“Certainly, for the USDINR, time has been a fast rollercoaster as it took the currency nearly 3 tries and 48 trading sessions to break above 80 levels and hold, while it took just one session to take all stability away and quickly jump to 81.00 levels,” said Amit Pabari, Managing Director of CR Forex Advisors.
Because we warned and prepared CR Forex clients for such a drastic drop in the rupee, it saved them from making losses by following proper hedging practices,” he added.
The RBI likely sold dollars through state banks on Friday after the rupee pushed losses to a record low, three traders told Reuters.
“The intervention at 8:20 am was quite aggressive and may be putting a bottom on the rupee for the time being,” said a trader at a private bank. Two state-run bank traders also confirmed that the RBI was selling dollars, Reuters reported.