Rupee ends 17 paise up at 89.24 against US dollar on RBI support

Indian rupee

Indian rupee ended 17 paise up on November 24 and stayed up throughout the day on support from the Reserve Bank of India (RBI), currency experts said.

The local currency ended at 89.2375 against the US dollar, as compared to 89.4088 against the greenback at previous close. The domestic currency opened at 89.1450 against the greenback.

“While the RBI’s presence has helped steady the market, the broader trajectory still hinges on fresh catalysts,” said Abhishek Goenka, founder & CEO, India Forex Asset Management-IFA Global.

On November 21, the local currency depreciated to a record low of 89.49 against the US dollar due to outflows from foreign investors from Indian equities, uncertainty over a US-India trade deal, and absence of RBI's support sparked the slide in the rupee.

The central bank has been supporting the local currency in last few weeks to curb excessive volatility.

“Today’s dip was an excellent opportunity to go long the dollar as FPIs are constant sellers in this market in equities and debt. 1-month premium rose to 1.90% on liquidity shortage as RBI continues to sell dollar and absorbs rupee liquidity. The pair is expected to stay between 89.00 to 89.50,” said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP.