Finance
On Thursday, the Indian rupee dropped to an all-time low of 87.55 against the dollar, exceeding the previous day’s low. The reduction is ascribed to increasing dollar demand, which could be linked to the non-deliverable futures market.
The rupee slid 0.1% to 87.55, surpassing the previous record low of 87.4875 set on Wednesday.
However, dollar purchases by state-run banks, most likely on behalf of the Reserve Bank of India, helped reduce its losses, according to three dealers, one of whom is intimately aware with the situation.
The offers from state-run banks are “quite strong,” but dollar buying pressure remains relentless, according to one dealer.
The daily dollar-rupee reference rate was stated at a premium of 0.50/0.60 paisa, indicating increased demand for the dollar.
The rupee has been in a steady decline over the last six months due to a lack of portfolio inflows, uncertainty over US President Donald Trump’s trade policy, and, most recently, anticipation of rate reduction by the Reserve Bank of India.
The rupee has dropped approximately 2% this year so far, making it the weakest performer among Asian currencies.
Source: IE
