Due to bank sales of US dollars and a decline in the price of crude oil globally, the rupee recovered from record lows on Monday, rising 49 paise to 89.17 against the US dollar in early trading. Forex traders claim that the Reserve Bank of India’s (RBI) involvement and a favorable opening in the domestic equity markets supported the domestic unit.
The native currency fell 98 paise to close at 89.66 against the US dollar, the sharpest decline in more than three years. On February 24, 2022, the previous largest one-day decline was noted at 99 paise against the dollar.
Due to strong demand for the US dollar in the domestic forex market amid widespread selling pressure in local and global equities and trade-related uncertainty, the rupee fell 98 paise to settle at its lifetime low of 89.66 against the US dollar on Friday.
The dollar index, which measures how strong the US dollar is in relation to a basket of six other currencies, was up 0.01% at 100.18. In futures trading, Brent crude, the world’s benchmark oil, was down 0.10% at USD 62.50 per barrel.
Due to a sharp rise in the value of gold reserves, India’s foreign exchange reserves increased USD 5.543 billion to USD 692.576 billion during the week ending November 14, the RBI reported on Friday.
