The Indian rupee depreciated in August 2023, closing at 82.79 per US dollar. It is expected to remain in a range of 82.60-82.90 in the coming days.
The depreciation was primarily due to the strength of the dollar index, which rose 2.4% in August. The US bond yields also rose, which made the dollar more attractive to investors.
The RBI intervened in the foreign exchange market to prevent further depreciation, but its efforts were limited. Commercial banks also helped to stabilize the rupee by winding up their positions in the non-deliverable forward market.
The depreciation of the rupee is likely to make imports more expensive and dampen economic growth. The RBI will continue to monitor the situation and intervene in the foreign exchange market if necessary.
The rupee depreciated in August 2023 due to a stronger dollar and rising US bond yields. The RBI intervened in the foreign exchange market, but its efforts were limited. Commercial banks also helped to stabilize the rupee.