Following a downward trend in domestic stocks, the Indian rupee fell 4 paise to 83.32 versus the US dollar (23.1 against the UAE dirham) during the early session on Monday.
Constant outflows of foreign funds also put pressure on the local currency, according to FX dealers.
The opening rate of the rupee versus the dollar at the interbank foreign exchange was 83.31. In the first trades, it fell 4 paise from its previous close, reaching a low of 83.32.
Given that the majority of major central banks have probably completed their cycles of policy tightening, analysts speculated that the dollar’s recent bull run may be coming to an end, which would lessen the pressure on the RBI to interfere in the currency markets.
Shaktikanta Das, the governor of the Reserve Bank of India, justified the regular use of the $586 billion in foreign exchange reserves last month, stating that it was required to avoid excessive volatility. In the preceding four months, the central bank sold almost $23 billion worth.
