Rupee Hits Record Low Amid Dollar Demand: RBI Intervenes

Rupee Hits Record Low Amid Dollar Demand: RBI Intervenes l/PTI

VoM News Desk | March 27, 2024 | 11:41 PM IST | Breaking News | Follow on Google News

Rupee Hits Record Low Amid Dollar Demand

Rupee Hits Record Low Amid Dollar Demand: RBI Intervenes

The Indian rupee plunged to a fresh record low against the U.S. dollar on Wednesday, prompting intervention from the Reserve Bank of India (RBI) to stabilize the currency. Strong dollar demand from local importers and oil companies contributed to the rupee’s decline, reaching a record low of 83.45 during the trading session.

Currency Performance and RBI Intervention

As the session progressed, the rupee’s value weakened further, settling at 83.37 against the dollar by late afternoon, marking a 0.1% decline from the previous day’s close. The RBI took action to curb the rupee’s depreciation, likely by selling U.S. dollars to mitigate the impact on the currency’s value.

External Factors and Market Response

External factors, including weakness in the offshore Chinese yuan and the Japanese yen, added pressure on the rupee during the trading session. In response to the escalating depreciation, at least three state-run banks were observed offering dollars, presumably acting on behalf of the RBI, to support the rupee’s stability.

The RBI’s intervention underscores its commitment to maintaining stability in the foreign exchange market amid fluctuations in currency values. The central bank’s actions aim to mitigate the impact of external factors and address strong demand for the U.S. dollar, which has contributed to the rupee’s record low.

Outlook and Market Sentiment

While the rupee faces challenges from strong dollar demand and external factors, the RBI’s intervention provides reassurance to investors and market participants. Continued monitoring and intervention by the central bank are expected to help stabilize the rupee and mitigate further depreciation, ensuring a balanced and resilient foreign exchange market in India.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.