RBI support pulls rupee up from fresh lows, helps currency recoup losses

Central bank may have sold dollars heavily around the 80.05 mark to shield domestic unit

After weakening to a new low against the US dollar on Monday, the rupee recouped most losses as market interventions by the Reserve Bank of India (RBI) in the form of dollar sales reined in depreciation in the domestic currency, dealers said.

The rupee touched a fresh low of 80.13 per dollar in early trade as comments by Federal Reserve Chair Jerome Powell reinforcing the central bank’s commitment to rate hikes strengthened the greenback globally.

But, with the RBI stepping in to protect the rupee, the domestic currency ended the day at 79.97 per dollar. The rupee had closed at