InvestorQ : How did the rupee manage to gain on 24 March? Was it due to RBI intervention?
Neelam Naik made post

How did the rupee manage to gain on 24 March? Was it due to RBI intervention?

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NISHA Nayak answered.
10 months ago
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On March 24, the rupee gained against the US dollar in the midst of the Bloomberg Dollar Index weakening after the US Federal Reserve announced another round of stimulus measures. These measures were announced by the Fed to cushion the impact of the Coronavirus on the American economy but any stimulus has the effect of weakening the currency. Other Asian currencies were also higher against the US dollar today. The rupee appreciated to 75.93/$ as compared to previous close of 76.29/$. The RBI has been intervening on and off but clearly, if they had intervened at 75 in 2018, it would happen at a higher rate in 2020. Rupee strength was more an outcome of dollar weakness.

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