Mumbai: The rupee logged its worst single-day decline in nearly a month amid escalation in the conflict between India and Pakistan. The currency closed at 84.82 per dollar, weaker by 39 paisa from its previous close, logging its worst single day decline since April 9, LSEG data showed.
Intermittent dollar sales by state run banks, likely on behalf of the Reserve Bank of India, helped contain excess losses for the currency, traders said. The rupee traded in the range of 84.45/$1 to 84.95/$1 during the day.
The currency's decline below the 84.50/$1 threshold presented an optimal opportunity for exporters to sell dollars and effectively hedge their foreign exchange exposures.
"Exporters were found selling dollars above 84.75/$1 levels for their exposure. There was enough demand for the dollar during the day and likely intervention by RBI made sure that the currency did not fall beyond the 84.95/$1 level," said Anil Bhansali, head of treasury at Finrex Treasury Advisors.
Asian currencies were lower on the day, with the Indonesian rupiah down 0.5%, LSEG data showed.
Source Name : Economic Times