Re falls to all-time low of 83.66/$

Weak domestic markets and elevated oil prices pressured the rupee. However, likely Reserve Bank of India (RBI) intervention prevented a sharp fall in the domestic unit

Mumbai: The rupee consolidated in a narrow range and depreciated 3 paise to close at its all-time low of 83.66 against the US dollar on Friday, weighed down by strong American currency and muted trend in domestic equities. Forex traders said weak domestic markets and elevated oil prices pressured the rupee, however, likely Reserve Bank of India (RBI) intervention prevented a sharp fall in the domestic unit. At the interbank foreign exchange market, the local unit opened at 83.64, and touched an intra-day high of 83.60 and a low of 83.66 against the dollar during the trading session. It finally settled at an all-time low level of 83.66 against the American currency, registering a loss of 3paise from its previous close.

On Thursday, the rupee depreciated 5paise and settled at a new low of 83.63 against the US dollar. “We expect the rupee to trade with a slight negative bias on weak global markets and a strength in the US Dollar. Weak Asian and European currencies may also weigh on the rupee,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said. Choudhary said Foreign Institutional Investors (FIIs) inflows and any intervention by the RBI may support the rupee at lower levels. “USD-INR spot price is expected to trade in a range of Rs 83.40 to Rs 83.90,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.16 per cent at 104.33. Meanwhile, the Asian currencies were all down after a fall in European currencies as the European Central Bank (ECB) kept rates unchanged in its meeting with a possibility of a cut in September, traders said. FIIs were net buyers in the capital markets on Thursday as they purchased shares worth Rs 5,483.63 crore, according to exchange data.