The rupee opened weaker at 85.89 against the dollar. The currency opened at an all-time low, down 4 paise, according to Bloomberg. Wednesday’s closing price was Rs 85.86.
The local currency hit a record low of 85.846 against the dollar on Wednesday, after opening at 85.82 against the dollar. The currency opened 4 paise higher on Tuesday but continued to close lower.
According to Finance Secretary and Executive Director Anil Kumar Bhansali, the Indian rupee depreciated to a low of 85.86 yesterday and is as low as 85.91 this morning unless the RBI wants to monitor the fall as it was selling at 85.86 yesterday. It was expected that it would start. Finrex Treasury Advisors LLP
“Foreign institutional investors are maintaining a selling stance due to global risk aversion and weak domestic indicators,” said Amit Pavali, managing director at CR Forex Advisors.
Bhansali pointed out that the revised trade deficit statistics had no impact on the depreciation of the rupee as the rupee continued to hit record lows on a daily basis.
India Forex and Asset Management expects the rupee to remain at 85.81-85.87 rupees for the day. Meanwhile, Bhansali expects the rupee to trade in the range of Rs 85.75 to Rs 85.97 on Thursday, with exporters wary of hedging. Importers are advised to buy when the dollar is weak.
