The rupee slipped 5 paise to 83.12 as safe-haven dollar demand hit Asian FX. The RBI intervened in spot markets to cap losses. Importers hedged at 83.10-83.15.
The rupee weakened 5 paise against the dollar on Monday, tracking a broader bid for the greenback as risk appetite faded across Asian markets. The local currency closed at 83.12 per dollar, down from 83.07 in the previous session.
Traders cited safe-haven flows into the dollar after a weekend of geopolitical headlines that dampened sentiment toward emerging-market currencies. The move was modest but broad-based, with the Indonesian rupiah and the Thai baht also losing ground.
India's central bank was active in the spot market, three traders said, selling dollars to prevent a sharper decline. The intervention kept the rupee's losses contained relative to peers. The rupiah fell 0.3% against the dollar; the baht slipped 0.2%.
Importers stepped in to hedge at the 83.10-83.15 levels, adding to the pressure, a Mumbai-based forex dealer said. Exporters held off on dollar sales, waiting for a stronger bounce.
The rupee has traded in a tight 83-83.20 band over the past two weeks, with the RBI smoothing volatility on both sides. Monday's close at 83.12 leaves the pair near the middle of that range.
HDFC Bank, Infosys and Wipro – each with significant forex exposure – saw their shares edge lower in Mumbai trading. The broader Nifty 50 fell 0.4%.
For more on currency positioning and rate differentials, see the forex market analysis page.
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