The rupee, which like totally got weaker by 127 paise over Wednesday and Thursday, decided to make a comeback by recovering 34 paise on Friday. The RBI, apparently feeling generous, sold some Dollars to help out the Indian unit, which opened nine paise weaker than before. The rupee managed to close the day on a somewhat stronger note at 85.37 per US dollar, compared to the previous close of 85.71.
Even with all the drama between India and Pakistan heating up and the domestic equity markets taking a hit, the rupee somehow managed to pull through and end the day stronger. Rumor has it that the RBI swooped in to save the day by intervening in the forex market. This whole rollercoaster ride saw the rupee weaken by a total of 127 paise over two days, only to bounce back by 34 paise on Friday. Rahul Kalantri, Vice-President of Mehta Equities, chimed in with his two cents, predicting that the rupee might face more ups and downs due to the escalating tensions with Pakistan.
Not really sure why this matters, but apparently, a strong rebound in the US dollar index (thanks to some US-UK trade agreement) and a spike in crude oil prices are putting pressure on the rupee. On the bright side, there are some foreign portfolio investments flowing into the domestic equity markets and some surprisingly good corporate earnings that are giving the local currency a pat on the back. The forecast for next week? Well, we can expect the rupee to dance between 84.74 and 86.05.
So, like, it seems that the rupee had a bit of a rough patch but managed to get back on its feet with a little help from the RBI. Who knew a little intervention could go a long way? But hey, that’s the world of forex for you – always keeping us on our toes. Let’s see what next week has in store for our dear old rupee.