The Indian rupee, which breached the psychological level of 90 against the US dollar earlier this month, has shown signs of stabilisation, with recent movements indicating that the worst phase of depreciation may be behind, according to a market report by Invesco Mutual Fund.
The rupee has fallen from Rs 85 to Rs 90 per USD in under a year, far quicker than previous five-rupee intervals, which earlier took anywhere between 581 to 1,815 days. SBI in its report noted this as the second-quickest fall since the 2013 Taper Tantrum.
The rupee traded within a narrow range of Rs 87.83-Rs 88.70 per dollar over the past month, with volatility easing sharply from over 4 per cent in October to about 1.2 per cent in November.
Despite significant foreign portfolio investor (FPI) outflows in February, the Indian rupee managed to avoid sharp depreciation, because of a stable US dollar and the Reserve Bank of India's (RBI) active intervention, according to a report by Bank of Baroda.
Even in May, it continued to trade in a tight range of 83.43-83.52 per US dollar amidst a lack of FPI inflows and dollar demand from oil companies, according to a report by the Bank of Baroda.
Mumbai (Maharashtra) [India], October 7 (ANI): With increasing oil prices weighing on traders' sentiments, the rupee plunged to an all-time time low of 82.22 against the US dollar in morning trade on Friday.