rupee: Rupee slumps to an all-time low, recovers to 77.42

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Mumbai: The rupee fell to a new all-time low intra-day on Thursday against the US dollar amid foreign investor outflows. It later recovered after the Reserve Bank of India likely stepped in to cut the local unit’s losses.

The RBI is estimated to have sold at least $1.5 billion in futures and spot market primarily via two large public sector banks, dealers told ET.

This saved the rupee’s relative performance among Asian peers. On Thursday, the Indian unit ranked third after the Japanese Yen and Hong Kong dollar, losing just about 0.27% to the dollar despite it touching a historic low at 77.63, surpassing its earlier all-time record low at 77.53 during Monday’s trade.

RupeeAgencies

“Two large public sector banks sold dollars on behalf of the central bank,” said one of the persons cited above. A private sector bank is also likely to have sold dollars via the Gujarat GIFT City.

The rupee closed at 77.42, Bloomberg data show. It had closed at 77.46 a dollar on Monday, its lowest ever closing level.

RBI did not comment on the matter.

“Collectively, the rupee is likely to remain under pressure albeit its relative resilience among Asian peers,” said Abhishek Goenka, CEO at IFA Global, a Mumbai-based forex advisory. “India is facing a double whammy of inflation risk and overseas outflows in both debt and equity like never before.”

The Bloomberg One-month Volatility Index shot up 30 basis points, less than half the pace at which yuan turned volatile against the greenback.



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