Rupee Under 80 Per Dollar Defended By RBI, But Risks Sharp Fall

The rupee was flat early on Monday and trading under 80 per dollar, defended heavily so far by the Reserve Bank of India's intervention.

The rupee was flat early on Monday and trading under 80 per dollar, defended heavily so far by the Reserve Bank of India's intervention even as the greenback started the week on a firm footing ahead of the Federal Reserve meeting.

Bloomberg showed the rupee was last at 79.8587 after opening at 79.8400 against the dollar, compared to its previous close of 79.8537. The rupee traded in the range of 79.8350 to 79.8625, according to the news agency.

PTI reported that the rupee gained five paise to 79.85 against the US dollar in early trade.

But a separate report showed the rupee risks a further decline to 82 per dollar in the near term due to the widening of the trade deficit and expected aggressive rate hike by the US Federal Reserve later this week to tame record high inflation according to economists.