Rupee holds steady amid c. bank intervention

The Indian rupee closed almost unchanged on Tuesday, supported by the Reserve Bank of India‘s (RBI) intervention to prevent a fall below the crucial 84 level to the dollar.

According to traders, the RBI likely sold dollars, via state-run banks, near 83.97 levels to support the local currency.

The rupee closed at 83.97, almost the same as its all-time low of 83.9725 in the previous session, as the central bank reportedly sold dollars through state-run banks to stabilise the exchange rate.

Most Asian currencies weakened, but the rupee remained stable. Market participants are cautious before the release of key US consumer inflation data on Wednesday, which will impact expectations for Federal Reserve rate cuts.

The dollar-rupee forward premium experienced a slight increase, with the one-year implied yield rising by two basis points to 2.04 per cent.

Attribution: Reuters

Sub-Editing: Y.Yasser