According to four traders, the Reserve Bank of India (RBI) engaged in dollar purchases through state-run banks on Monday in an effort to prevent a significant appreciation in the Indian rupee. The RBI reportedly bought dollars at levels ranging from 82.65 to 82.68 amidst continuous foreign inflows.
Managing Dollar Inflows and Rupee Appreciation
The RBI has been actively involved in managing the impact of dollar inflows to ensure that the rupee’s rise remains controlled and does not become overly dramatic. This move is aimed at maintaining stability in the currency market.
Rupee Exchange Rate and Recent Performance
As of Monday, the Indian rupee was trading at 82.74 against its previous close of 82.7850. Earlier in the day, the rupee had reached an intraday high of 82.65, the highest level in over six months.
It is important to note that currency movements are influenced by various factors such as foreign investment flows, economic indicators, and central bank interventions. The RBI’s actions in this case serve as an example of how central banks can actively manage currency appreciation or depreciation to maintain stability in the economy.
