Traders Suggest RBI Selling Dollars To Prevent Record Low Rupee
According to information from four traders who spoke to Reuters on Monday, the Reserve Bank of India (RBI) is taking steps to sell dollars through state-run banks to prevent the rupee from reaching a historically low level.
The rupee's value stood at 83.2475 against the U.S. dollar, showing minimal change from its previous session close at 83.2625, despite the challenges faced by other Asian currencies and the surge in oil prices.
Brent crude oil futures witnessed a nearly 6 per cent increase on Friday, reaching USD 91 per barrel, primarily due to concerns related to ongoing military conflicts in the Middle East.
Traders have reported that the RBI is actively intervening around the 83.25 exchange rate and this intervention has become a routine measure to curb any further devaluation of the rupee.
RBI Governor Shaktikanta Das noted the need for central banks in emerging markets to occasionally step into the currency market to prevent excessive volatility, as stated during a recent event at the IMF and World Bank annual meeting held in Marrakech.
