The rupee hit a record low against the dollarfor a second consecutive session on Friday to approach the psychological 57 mark, hurt by dollar demand from oil firms and gold importers, as well the broad risk-off sentiment.
Traders did not spot intervention from the Reserve Bank of India so far, but most expect the central bank to step up dollar sales if the rupee ventures close to the 57 mark.
The RBI was suspected to have sold dollars on Thursday, though the actions were described by traders as “mild.”
“The USD is strong across the board. I think at the higher levels exporters are unwinding their positions partially,” said Uday Bhatt, a forex dealer with state-runUCO Bank.
Source: The Economics Times
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