Rupee breaches 81 vs USD before RBI steps in; FX reserves at near 2-yr low

So far in 2022, the local currency has depreciated 8.2 per cent versus the greenback

The rupee closed at a new low against the dollar on Friday, even as market interventions by the Reserve Bank of India (RBI) helped the local currency recoup much of the hefty losses suffered in the course of the trade when it breached the 81 mark for the first time.

According to dealers, the RBI sold dollars heavily around the 80.20-80.25 per dollar mark in order to curb the volatility in the rupee. The central bank dipping into foreign exchange reserves to control the rupee’s fall over a period, among other factors, resulted in reserves falling for a seventh straight week