Reuters – August 14, 2023
The Indian rupee on Monday declined below 83 to the U.S. dollar for the first time since October 2022, prompting the Reserve Bank of India to intervene, three traders told Reuters.
The rupee was at 82.9650 to the dollar by 09:32 a.m. IST, down from 82.8450 on Friday. The currency had earlier dropped to 83.0725.
“The price action on the D2 (the interbank order matching system) and the names we are hearing on the offer (on USD/INR) suggests that the RBI is intervening,” a dealer said.
“It’s obviously not a surprise that the RBI is there, but today seemed like the kind of day where it was possible they would relent”.
The rupee’s Asian peers were all down, pressured by the rise in U.S. yields. The Korean won, the Malaysian ringgit and the Indonesian rupiah were down between 0.6% and 0.8%.
Reporting by Nimesh Vora; Editing by Savio D’Souza and Sonia Cheema