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RBI purchased dollar through State run banks to prevent Rupee appreciation


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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.

One Comment

  1. well, RBI purchased dollars to prevent appreciation of rupee, it increase foreign currency reserves and decrease inflation in Indian market. But on the other hand, it is should also to be considered by the RBI that value of INR decrease daily in comparison to dollar, the reason is being that India GDP ratio is low than American dollar due to uncontrollable reasons to check over cost of consumer and infrastructure items in Indian market.

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