The Reserve Bank of India (RBI) on Friday intervened in the foreign exchange market as the rupee weakened to a more than two-year-low of 67 a dollar. The intervention helped the currency to eventually recover ground.
Rupee/Dollar: The rupee closed at 66.69 a dollar as compared to the previous close of 66.65. According to dealers, state-run lenders sold dollars on behalf of the central bank when it touched the 67 mark as the latter is keen to curb volatility ahead of the U.S. Fed meet. Market participants said the central bank will look to protect the 67 a dollar level. The central bank, however, always maintains that it does not target any particular level and only intervenes to curb volatility.
Visit Us www.marketmagnify.com