Mumbai: The Indian rupee fell 18 paise to 86.52 per dollar on Tuesday, its largest single-day fall in two weeks, after the dollar index strengthened after comments about trade tariffs from US President Donald Trump. Intervention by the Reserve Bank of India helped contain excess losses, traders said
The dollar index strengthened to 107.87 on Tuesday, after it had fallen to 106.96 the previous day, hurt by the selloff in US technology stocks.
“Public sector banks sold dollars, likely on behalf of the RBI, as the rupee hit a low of 86.57/$1. Additionally, forward premiums on the currency pair also came down after the RBI announced liquidity measures,” said Anil Bhansali, head of treasury at Finrex Treasury Advisors. The one-year dollar-rupee forward premiums dropped by 11 bps to 2.17%, according to Reuters.
