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Rupee Touches 83.76 per Dollar, Then RBI Buys Dollars

3 May 20251 min read
ECONOMYRupee Touches83.76 per Dollar,Then RBI BuysDollars3 May 2025safalsetu.com

Why in the news

The rupee spiked to a seven-month high early in the session, then lost ground as the central bank bought dollars heavily.

Key facts

  • Peak: 83.76 per dollar, best since 30 September 2024 (83.71).
  • First move under 84/USD since 17 October 2024, triggering stop-losses and foreign inflows.
  • Close: 84.55, versus 84.49 a day earlier.
  • RBI’s purchases of about $3 billion aimed at containing volatility and export competitiveness.
  • New 10-year bond coupon: 6.33%; now the second most liquid on-the-run G-Sec.
  • Forex reserves are also at a seven-month high.

Exam angle

  • Level breached: 84; coupon: 6.33%.

Test yourself

1. To what level did the rupee strengthen intraday against the US dollar before RBI intervened in early May 2025?

The rupee appreciated to 83.76 per dollar in early trade.

2. What coupon was set on the newly issued 10-year government bond mentioned in the rupee update?

The 10-year G-Sec coupon was fixed at 6.33%.

3. Why did RBI reportedly buy about $3 billion when the rupee surged to 83.76/USD?

The purchases aimed at containing volatility and preserving export competitiveness.

This topic is part of Daily Current Affairs 3 May 2025 (19 topics).

All topics of the dayDay quizMay 2025

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