The Reserve Bank of Indian possible intervention helped the Indian rupee hold above its record low on Friday despite pressure from weakening domestic equities, which fell in tandem with a sell-off in global peers.
As of 10.35 am IST, the rupee was trading at 83.72 (Dh22.81) against the US dollar, staying steady from its closing value of 83.71 (Dh22.80) on Thursday. The declines in U.S. stock futures continued, with the S&P 500 futures down 0.7% and the Nasdaq futures down 1.3%.
Early in trading, the rupee was under pressure from dollar bids from at least two sizable foreign banks with US headquarters, probably acting on behalf of custodial clients, according to a foreign exchange trader at a private bank. Dealers speculated that the RBI may have supported the local currency as it was nearing its record low of 83.7450 by selling dollars through state-run banks.
U.S. bond yields dropped due to worries about geopolitical tensions and a slowdown in the country’s economy, as evidenced by data indicating an unexpected decline in manufacturing activity in the country last month.
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