Rupee opens 8 paise up at 86.8013 against dollar

Rupee

The Indian rupee opened 8 paise up against the dollar on February 13 as the dollar index eased.

The local currency opened at 86.8013 and traded at 86.8350 against the dollar. It closed at 86.8887 in the previous session.

The dollar index, which tracks the American currency's value against six major currencies, eased to 107.742 in early trade against 107.938 in the previous session.

The rupee has been getting support from the Reserve Bank of India (RBI), which has aggressively intervened in the foreign exchange markets.

On February 10, the rupee sank to a new low of 87.9563 after the US President Donald Trump came out with new tariffs.

The RBI swung into action and the rupee rebound to 86.47 against the dollar on February 12.

In Parliament, finance minister Nirmala Sitharaman quoted former RBI governor Raghuram Rajan to explain the rupee fall. She said the currency volatility across major countries was extensive and the dollar index rose 6.5 percent from October till January.

"Former RBI Governor Rajan, who even participated in the Bharat Jodo Yatra, has acknowledged on Jan 15, 2025 that fixation is always with the rupee-dollar exchange rate, reality is dollar has been strengthening against many currencies including the Euro... So it is really a dollar issue," the minister told the Lok Sabha.

The rupee is expected to stay volatile in the 86.60–87.20 range in the near term, Amit Pabari, managing director at CR Forex Advisors, said. It faces strong resistance at 87.20, while 86.50 will act as a key support with a bias towards appreciation, he said.