On Wednesday, when US yields rose and the dollar gained strength, the Indian rupee fell to record lows. Traders believed that the Reserve Bank of India’s intervention was preventing the rupee from losing even more ground.
By 0511 GMT, the rupee had fallen by 0.37% to 81.88 per dollar after hitting a record low of 81.9350 earlier in the day.
Traders informed Reuters that the Indian central bank was allegedly selling dollars through state-run banks at 81.90 levels, preventing a decline to 82-per-dollar levels.
A chorus of US Federal Reserve members overnight maintained a hawkish tone to bring down interest rates, which increased appetite for the dollar while tarnishing risk sentiment as global markets sold down sharply on concerns about high-interest rates sparking a recession.
Mahnur is MS(development Studies)Student at NUST University, completed BS Hons in Eng Literature. Content Writer, Policy analyst, Climate Change specialist, Teacher, HR Recruiter.
