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The rupee maintained stable on Friday after sliding in early trade after a major sell-off the previous session, despite the danger of higher for longer interest rates looming amid mounting global recession concerns.
According to Bloomberg, the rupee was last changing hands at 82.8862 per dollar, up from its previous closing of 82.7625 on Thursday.
Traders were right to be wary of betting on the rupee going below 83 per dollar in expectation of a Reserve Bank of India intervention (RBI).
Despite the potential of an oncoming recession, the US Federal Reserve, the European Central Bank, and the Bank of England all issued warnings about upcoming rate hikes, negatively impacting market sentiment toward risk assets.
Investors are anxious about longer-term growth because of the prospect of higher near-term rates, as signs of a global slump intensify.
The dollar, on the other hand, has had a rocky week, leaving it on track to lose 0.5% overall.
Ten-year Treasuries rose slightly on Thursday before settling in Asia. Nonetheless, currency swings were more substantial on Friday, with the dollar’s recent slide halted by its highest gain in two months.
