Rupee pinned near all-time low of 84.07 as regional currencies decline
Source: Business Standard
Indian rupee hovered close to a record low on Tuesday (Photo: Shutterstock)
The Indian rupee hovered close to a record low on Tuesday, pressed by a fall in its regional peers, while mild dollar sales from state-run banks supported the currency which has remained subdued this month.
The rupee was at 84.0725 against the US dollar as of 11:20 a.m. IST, nearly unchanged from its close at 84.06 on Monday.
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The currency had slipped to an all-time low of 84.0750 in the previous session, after weakening below 84 for the first time last week.
The rupee is down by about 0.3 per cent this month, but has fared better than its regional peers which have declined between 0.8 per cent to 3 per cent amid a rebound in the US dollar.
The dollar index was at 103.3 on Tuesday, its strongest level in over two months. Other Asian currencies were down between 0.1 per cent and 0.8 per cent.
Foreign banks were spotted bidding for dollars, likely on behalf of their custodial clients, a trader at a state-run bank said.
Sustained outflows from local equities have hurt the local currency this month, with foreign investors having pulled out about $8 billion so far.
Benchmark equity indices BSE Sensex and Nifty 50 were down about 0.2 per cent each on Tuesday, diverging from gains in most other Asian equities.
In the near-term, the local currency is expected to trade between 83.90 and 84.10, said Amit Pabari, managing director at FX advisory firm CR Forex. “However, with the right mix of RBI intervention and favourable global trends, the rupee could inch back to 83.80.”
Meanwhile, dollar-rupee forward premiums dipped, with the 1-year implied yield down 1 basis point at 2.20 per cent pressured by a rise in near-maturity US bond yields. The 1-year US Treasury yield was up 7 bps at 4.25 per cent in Asia hours.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Oct 15 2024 | 11:54 AM IST
