Mumbai: The Reserve Bank of India (RBI) has now become more active to prevent Indian rupee from falling against the US dollar, as it is feared that tariff war can change the global trade equations fundamentally, because the US President to the US Unprecedented business is pushing in war. As a result, the rupee suddenly improved rapidly against the US dollar in the afternoon due to RBI intervention. The level of 88 stopped at breakdown, it reached 86.63 from yesterday’s level of 87.48, finally increased by 66 paise to close at 86.83.
Yesterday, when the rupee reached the new lowest level of 87.96, it improved after RBI intervention, ie after starting the dollar sales. The rupee improved rapidly today after the RBI started selling dollars on Monday itself. RBI sold four billion dollars and expected to sell up to seven billion dollars to support the rupee.
Sources in the foreign exchange market said that the RBI has made a big selling in two days to prevent the rupee from falling against the dollar. Out of which $ 1.7 billion was sold via a single dealer trader, and a total of $ 4.5 billion to $ 5 billion. Of course, after selling such a huge amount of dollars on Monday, the Reserve Bank continued to sell a huge amount of dollars on today and Tuesday, causing the rupee to be faster and came within a level of 87. Which touched the Intra-Day high level of 87.95 yesterday. It is noteworthy that in its monetary policy review last week, the RBI took a step to increase liquidity in the system by cutting the repo rate by 0.25 percent.
In recent times, the rupee has been continuously weakening due to a significant increase in the US dollar demand for oil companies, while the importers are also buying dollars to meet their import commitments. Experts at the foreign exchange market were also saying that the rupee was continuously weakening due to the continuous selling of shares by foreign portfolio investors (FPIs) and sending the capital back under the pressure of the Trump government in the US.
The interbank foreign exchange market today improved rapidly in the rupee against the US dollar, as well as the rupee rapidly improved the currencies of other countries. The rupee increased by 72 paise to Rs 89.59 against the euro and the rupee increased by Rs 1.18 to Rs 107.36 against the British pound.
