Oil Prices: The rupee fell to an intraday low of 83.2650 early in the session but likely dollar sales from the RBI in the non-deliverable forward and over the counter markets prevented a further decline, traders said.
While the rupee has been weakening against the US dollar over the past weeks, the depreciation in the Indian currency has been far more contained than in the previous year. This year, the rupee has shed 0.6% versus the dollar. In 2022, it had depreciated by about 10% versus the greenback.
The rupee s depreciation is capped at 83.30 currently, while its strength seems to be limited at 82.85/90, said Arnob Biswas, head of foreign exchange research at Kotak Securities.
Retail inflation declined to 6.83 per cent in August after touching a 15-month high of 7.44 per cent in July, mainly due to softening prices of vegetables, but still remains above the Reserve Bank s comfort zone.
The dollar index inched up 0.2% in Asia hours to 104.76 while Brent crude oil futures climbed to $90.87 per barrel, hovering near their highest levels since November 2022.