MUMBAI: - The Indian rupee is likely to open at a lifetime low on Tuesday, weighed by the rally in the dollar index and the slump in the Chinese yuan in the wake of Donald Trump’s victory in the US Presidential election.
The 1-month non-deliverable forward indicated that the rupee will open at 84.40-84.42 to the US dollar, inching past the all-time low of 84.3925 hit on Monday.
The rupee has been making all-time lows after Trump’s US election victory.
Indian rupee slips to record low
The rupee would likely have fallen much more, probably near the 85-level, if it were not for the Reserve Bank of India’s regular intervention, per several traders.
The RBI “has been aggressive on the offer (on dollar/rupee)” and that “in a way is keeping things peaceful”, a trader at a bank said.
The sense right now is that the RBI wants the rupee to weaken due to what is happening to the dollar overall, but at a pace that does not “cause alarm”, he said.
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