The year-end is likely to bring some recovery for the Indian rupee. On Friday the currency opened at 90.13, up 0.1% from its previous close of 90.24 against the US dollar. Traders said the rebound is largely on the back of the RBI’s intervention on Wednesday, owing to which state-run banks sold dollars aggressively to prevent the currency from sliding past the 91-level mark.

Traders have said that the central bank’s intervention was more of a corrective measure. Earlier this month, RBI Governor Sanjay Malhotra had stated that the central bank does not have any specific target levels for the currency and that market forces will naturally guide the rupee’s trajectory.

“The RBI has, for now, broken the one-way (higher dollar/rupee) cycle. However, the recovery still looks tentative and more corrective than directional,”........

© The Financial Express