The rupee weakened slightly on Monday as a rampant dollar soared to a new two-decade high on escalating European energy crisis, but the Reserve Bank of India likely intervened to keep the Indian currency in check.
Bloomberg showed the rupee was last at 79.8463 per dollar compared to its previous close of 79.8025, and the day’s range of 79.8087 to 79.9075 against the greenback.
Reuters reported that the rupee down for the day but was trading in a narrow range, with dealers pointing to likely intervention by the RBI to limit the currency’s fall.
“One thing that is supporting the rupee is possibly the RBI’s intervention,” Anitha Rangan, economist at Equirus, told Reuters, adding that a moderation in external flows into Indian debt and equities was also a positive.
The rupee fared better than Asian developing currencies, which fell as the dollar index, which compares the greenback to six major currencies, soared beyond 110 as a result of a deteriorating energy crisis in Europe.