Informist, Friday, May 6, 2022

By Pratiksha and Richard Fargose

MUMBAI – As the Indian rupee slumped around 1%, nearly close to an all-time low, the Reserve Bank of India has stepped up its intervention in the forex markets, a banking industry source told Informist.

"The RBI is currently active in the market with dollar sales. Intervention is happening in all markets--spot, futures, NDF (non-deliverable forwards)," the source said.

After falling to the day's low of 76.96/$1, the RBI's intervention led to the Indian unit recovering some losses and trading at 76.78/$1 at 1345 IST as against 76.2550 on Thursday. It had touched an all-time low of 76.9800 a dollar on Mar 7.

The rupee had fallen sharply against the greenback today because the US dollar surged globally as a sharp sell-off in stocks and a rise in US Treasury yields boosted demand for the safe-haven US currency.

The dollar index hit a 20-year high as traders assessed the global central banks' policy actions and were also worried about rising recession risks.

The dollar index peaked at 104.06 today, its highest level since December 2002. At 1345 IST, the dollar index was at 103.91, against 103.75 on Thursday. It was at 102.59 on Wednesday.   End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Shirsha Thakur

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.

Informist, Friday, May 6, 2022

By Pratiksha and Richard Fargose

MUMBAI – As the Indian rupee slumped around 1%, nearly close to an all-time low, the Reserve Bank of India has stepped up its intervention in the forex markets, a banking industry source told Informist.

"The RBI is currently active in the market with dollar sales. Intervention is happening in all markets--spot, futures, NDF (non-deliverable forwards)," the source said.

After falling to the day's low of 76.96/$1, the RBI's intervention led to the Indian unit recovering some losses and trading at 76.78/$1 at 1345 IST as against 76.2550 on Thursday. It had touched an all-time low of 76.9800 a dollar on Mar 7.

The rupee had fallen sharply against the greenback today because the US dollar surged globally as a sharp sell-off in stocks and a rise in US Treasury yields boosted demand for the safe-haven US currency.

The dollar index hit a 20-year high as traders assessed the global central banks' policy actions and were also worried about rising recession risks.

The dollar index peaked at 104.06 today, its highest level since December 2002. At 1345 IST, the dollar index was at 103.91, against 103.75 on Thursday. It was at 102.59 on Wednesday.   End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Shirsha Thakur

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.