By Admin 
RBI on Indian Rupee: During the last few months, the Indian currency has seen a huge decline against the US dollar and at times it has reached historic lows. The Reserve Bank of India (RBI) became active to prevent the adverse impact of this fall in the rupee on the country’s economy. It has taken many such steps, by which the decline in rupee against the dollar can be reduced or it can be limited to a great extent.
RBI took steps
The RBI sold US$7.7 billion in August to control exchange rate fluctuations and prevent the rupee from falling against the American currency. According to the US dollar sales and purchases data published in the latest RBI bulletin, the central bank’s net sales of US dollars in August stood at US $ 7.69 billion, which is almost three times compared to the previous month.
According to the data, the central bank did not buy US dollars in July and August. RBI’s stated stance is that it does not target any level or range of the rupee-dollar exchange rate, but intervenes in the foreign exchange market only when there is excessive volatility. There was a big fall in the rupee against the dollar in August.
Big fall in rupee in last month
After this, amid increasing trade tensions, global uncertainties and continuous withdrawal of foreign portfolio investments, a decline in the Indian rupee against the US dollar was recorded in September. A day earlier, on Monday, October 20, due to buying by foreign investors and fall in crude oil prices, the rupee increased by 9 paise and closed at 87.93 (provisional) against the US dollar. According to Forex Traders, positive sentiment in domestic stock markets gave additional support to the local currency.
The rupee opened at 87.94 against the US dollar in the Interbank Forex Market. It fluctuated between a high of 87.74 and a low of 87.94 during the day’s trading. At the end of trading, the rupee closed at 87.93 (provisional) against the US dollar, showing an increase of nine paise over the previous closing price.
The rupee had closed at 88.02 against the US dollar on Friday. Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, rose 0.1 percent to 98.53. At the same time, global oil standard Brent crude fell 0.36 percent to $ 61.07 per barrel in futures trade.
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