Re rises from record low as RBI comes to rescue

MUMBAI: The rupee strengthened against the US dollar on Monday after RBI stepped in to stabilise the exchange rate, helping the currency recover from its record low last week.The rupee closed at 89.23, gaining 25 paisa after touching 89.49 on Friday, and remains one of the weaker Asian performers this year with a decline of more than 4%. Traders expect a depreciation bias to persist as the delay in a US-India trade agreement continues to weigh on flows. According to market participants, RBI intervened before the spot market opened and at intervals through the session to keep the currency from slipping past its all-time low.Meanwhile, data released in the monthly bulletin on Monday showed that RBI sold a net $7.9 billion in the forex market in Sept, buying $2.2 billion and selling $10.1 billion after the rupee hit its then-record low of 88.80. The RBI had sold a net $7.7 billion in Aug as well. Higher imports of gold and silver, combined with trade tensions with the US, added pressure on the rupee in September.