Rupee close to 80 per dollar: How RBI steps may help stabilise it

Over the past month, the RBI has also taken several steps to attract fresh overseas capital to Indian markets

The rupee has witnessed significant pressure versus the US dollar following the Russian invasion of Ukraine in late February 2022.

The domestic unit that had depreciated a mild 0.3 per cent against the dollar till February 23 — the day before Russia invaded Ukraine — has lost 6.9 per cent versus the greenback so far in the calendar year. The domestic currency, which over the past month has successively plumbed new lows, is now a stone’s throw away from the 80 per US dollar mark.

The combination of surging commodity prices since the Ukraine war and the US Federal Reserve’s