MUMBAI: The Indian rupee sank to a new record low on Monday, following the pound’s tumble and fears over more aggressive monetary tightening, with traders saying the Reserve Bank of India likely sold dollars to contain the decline.
The rupee hit a record low of 81.5525 per dollar, down from 80.99 in the previous session.
Indian rupee seen at record low as dollar, US yields surge; RBI eyed
The intervention by the RBI was confirmed to Reuters by four traders. “The reason rupee is managing to cling on to 81.50 is the RBI,” a private bank trader said.
“But the supply of dollars by the RBI is getting easily absorbed.”
Comments
Comments are closed.