Rupee at lowest against US dollar since Oct 2022

The Indian rupee on Monday opened below the 83-mark against the US dollar. This is the lowest level for the Indian currency since October 2022. This is due to rise in US bond yields and the US dollar index.

 

 

The US dollar index measures the strength of the American currency against a basket of six other currencies. It has increased to 103-level.

 

The rupee was at 83.0500 to the dollar by 09:06 a.m. IST, down from 82.8450 on Friday.

 

The 10-year U.S. yield rose to 4.18%, while several Asian currencies were down more than 0.5%.

 

A dealer told Reuters that clearly, it's all about the RBI (Reserve Bank of India). The dealer added, "If the RBI does not push it (USD/INR) below 83, you will see a decent-sized move higher."

 

RBI has been intervening in both spot and forward positions under the forex market to tackle the rupee's depreciation since May last year.

 

Besides, Asian currencies were down between 0.2% and 0.6% to begin the week. The offshore Chinese yuan dropped to 7.2775 to the dollar, the lowest in one-and-a-half months.