The Indian rupee appreciated to close above the 96 per dollar mark for the first time in a week on Friday, as the Reserve Bank of India intervened aggressively to contain depreciation, after the currency nearly touched the 97 level on Wednesday.
The rupee closed at 95.69 per dollar on Friday, versus its previous close of 96.20. It traded between 95.67 and 96.31, giving importers an opportunity to hedge their exposure, traders said.
“We saw public sector banks offering dollars throughout the day today and yesterday (Friday and Thursday). Such massive intervention is seen after a long time, and it seems the RBI wants to cut back rupee-negative positions that were in the market,” a trader from a PSU bank said.
Dealers expect the rupee to trade between 95 and 96 on Monday.
Meanwhile, Asian currencies were mostly weaker, with losses led by a 0.6% fall in the Korean won, Reuters data showed.
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