Today, the Indian rupee ended its ongoing downward trend and ended the day at 89.87, up 0.2% versus the US dollar. At 90.12, the local currency had opened on a weak note. The currency reached a peak of 89.84 during trading sessions, according to a Reuters report, although importers intervened to limit more advances.
One of the worst-performing Asian currencies in recent memory, the rupee saw a minor rebound, primarily due to the US dollar’s decline and a drop in the price of crude oil as a result of the geopolitical tensions between Russia and Ukraine receding.
The dollar stayed unchanged at 99, while the rupee increased 23 paise to 89.82 as short covering surfaced following a slight recovery in stocks. There was no obvious market intervention and no direct assistance provided by the RBI policy. Volatility is anticipated to remain high as the Fed’s final policy of the year is due this week. The rupee is probably going to move between 89.75 and 90.25.
Due to the absence of a trade agreement between the two nations and the ongoing withdrawal of foreign stocks from the domestic markets, the local currency, which had repeatedly broken the psychologically significant 90-level mark versus the dollar last week, had been on a weakening spree.
