Rupee ended Thursday at 81.86/ $

30 Sept 2022 , 02:51 PM

Following a volatile day in which the Reserve Bank of India probably sold dollars to strengthen the local currency, the Indian rupee edged up against the US dollar to settle marginally higher on Thursday. A little bit higher than the previous session's new low of 81.94, the rupee closed the day at 81.86 to the US dollar.

The rupee had a stronger opening at 81.61 but was unable to hold onto its gains as international banks and oil corporations bought dollars. According to dealers, the rupee almost hit a record low intraday of 81.95, which would have prompted the RBI to sell dollars. Two bankers and one FX trading business told Reuters that the central bank had intervened.

For more than two hours in afternoon trades, the rupee traded in a constrained range between 81.90 and 81.93 to the dollar. A dealer from a private sector bank stated, "Once again, the rupee managed to avoid dropping below 82."

However, the trader stated that it "obviously appears like it is just a matter of time" until the rupee drops below that mark. The rupee was under pressure due to the dollar index's recovery and the continued selling of Treasury bonds. The 10-year Treasury yield increased by roughly 15 basis points while the dollar index increased by 0.5% to 113.36.

U.S. equities futures suggested that it was doubtful that the overnight gain would continue. The BSE Sensex, an indicator of Indian stocks, dropped 0.3% to 56,409.96. Earlier in the session, the Sensex had reached a peak of 57,166.14.

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