Rupee at record low of 83.737/$1, unchanged from previous close
rupee declined to a record low of 83.7275/$1 on Monday due to month-end dollar demands by corporates, but further weakening of the currency was capped because of likely intervention by the Reserve Bank Of India.
The local currency ended at 83.7275 against the US dollar on Monday, unchanged from its previous record low close on Friday, LSEG data showed. The currency hit its record intra day low of 83.74/$1 during Monday's trading session.
The RBI likely sold dollars via public sector banks to cap the weakness in the rupee.
“The RBI has been holding the rupee in a narrow range via a two sided intervention and this dual sided intervention has kept the rupee's volatility in check relative to historical levels”, said Anil Bhansali, Head Of Treasury, Finrex Treasury Advisors.
The rupee has been declining and has weakened for five out of six previous trading sessions. Outflows from local equities and volatility in Asian currencies have been contributing factors adding to weakness in the rupee.
Markets now await the US Federal Reserves policy decision later this week where interest rates are expected to be steady. Traders will be looking out for any guidance on the anticipated trajectory of the rates.
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