Rupee Falls to 95.97 Against US Dollar Amid RBI Intervention
The Indian rupee weakened slightly against the US dollar in early trade on Thursday, October 1. It fell by 3 paise to 95.97 against the greenback, trading within a narrow range.
According to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, aggressive foreign exchange intervention by the Reserve Bank of India (RBI) through state-run banks is keeping spot rates from breaking past the key 96.00 boundary.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 101.54, higher by 0.09 per cent. This is its highest level in two months and has been up almost 2 per cent in September.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, noted that a firm dollar is a headwind for gold, silver, and emerging market currencies, including the rupee.