‘Trend appears weak for rupee’
The rupee hit a historic intraday low for the second straight session, falling to 70.86 against the dollar. Month-end dollar demand from importers and the recent rise in oil prices have spurred the trend.
Opening at 70.69, from Wednesday’s record closing low of 70.59, the rupee fell 0.21% to an all-time closing low of 70.74.
The trend forward for the rupee, which has been spiralling downward recently, looks weak, according to currency traders. Dealers also urged higher intervention by the Reserve Bank of India (RBI) to help avoid panic-triggered trades.
“The rupee needs more support from the RBI or, some big global positive news,” said Sajal Gupta, Head Forex & Rates, Edelweiss Securities.
“The trend remains weak until [there is] some sizeable intervention by the RBI — [be it] verbal or actual. There is a lot of panic buying amongst importers and equity investors as well, who want to hedge the currency risk now.”