Rupee Hits 80 Per Dollar For First Time, Recovers After RBI Intervenes

Story Highlights
  • The rupee recovered after breaching the key 80 per dollar mark for the first time ever.
  • The growth stalled seven straight sessions of losses.
  • Traders warn of temporary respite.

Mumbai: The Indian rupee steadied on Tuesday after the currency crossed 80.05 per dollar earlier, hitting a record low for a seventh successive session, as the central bank intervened by selling dollars, dealers said. It hit a low of 80.0175 in early trade compared with the previous close of 79.9775 on Monday.

Traders warned that the respite in Rupee could be temporary and that the recovery indices might topple.

The Reserve Bank of India has been intervening in both the spot and forwards markets to slow the rupee’s fall and has taken several measures in recent weeks to boost foreign fund inflows.

The greenback hovered just and below its multi-year highs but above a one-week low reached overnight versus major peers as markets reduced the odds of a percentage-point Federal Reserve rate hike this month.

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