Punjab, Sept. 15 -- The rupee closed at 96.07 to the dollar on Tuesday, weaker by 0.25% on the day. The Reserve Bank has been intervening around the 95.80 level. The record low, set on 20 May, is 96.84.
Three things pushing the same way
Brent crude above $107 raises India's import bill directly, and oil is the single largest line in it.
The US 10-year Treasury yield touched 5% for the first time in nearly three years. When the risk-free dollar asset pays that much, capital does not need a reason to leave emerging markets - it needs a reason to stay.
Domestic inflation at 4.82% in August, a 20-month high, removes the obvious third option of cutting rates to support growth.
What intervention near 95.80 actually means
A central bank defe...