The Indian rupee on 6 August slipped and closed to its weakest level on record, following the pressure from the decline in its Asian peers and a strong demand for dollar in the non-deliverable forwards market.
The Indian rupee hit an all-time low of 83.96 per U.S. dollar before closing at 83.9525, which is a 0.1% decline from its previous close of 83.8450 during the previous session.
Concerns about a U.S. economic slowdown and the unwinding of carry trades using the Chinese yuan to fund long bets on the rupee have pressured the local currency this week.
However, the Reserve Bank of India’s (RBI) interventions in the non-deliverable forwards (NDF), spot over-the-counter (OTC), and futures markets have kept volatility in check.
State-run banks intermittently sold dollars during Tuesday’s session, likely on behalf of the RBI, helping to limit the rupee’s weakness, said a foreign exchange trader at a private bank.
Moreover, the dollar index was higher by 0.2% at 103.1 against most Asian currencies that have weakened, including the Malaysian ringgit over 1% drop.
Meanwhile, dollar-rupee forward premiums eased slightly but retained most of their gains from Monday’s surge to a 14-month high.
Unlock profitable opportunities every day! Unicorn Signals provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Unicorn Signals and start winning now!
