The Indian rupee touched a fresh all time low against the US dollar on Friday, November 10, even as it was expected to strengthen amid the fall in crude prices. The Indian currency slipped below the prevailing low of 83.30 against dollar and touched an all-time low of 83.36 per dollar as the Reserve Bank of India (RBI) stays away from intervention probably due to calmer global markets.
Later, the central bank sought an explanation from Refiniv FX trading platform regarding the outrage that led to some panic and pulled the rupee to its all time low vs the US dollar.
According to dealers, there is no special demand push today, only business as usual demand from FPIs and oil companies. The central bank has consistently intervened in non-deliverable forward and forward markets in the past two months, but has been absent today
The central bank watchers say that the RBI would like the rupee to find its own level on normal days and intervenes only on panic days. According to some, the central bank may be wanting a slow depreciation to benefit exporters, domestic economy and its own ability to pay dividend.
The near term support for the currency is seen at 83.50. 84-84.50 per dollar's need likely in the next quarter.
The dollar index — which measures the American currency against the yen, the pound, the Canadian dollar, the Swedish krona, the Swiss franc and the euro — was last trading flat above the 105-mark.
Crude oil benchmarks were trading higher in the trade today. At the last count, Brent crude futures were trading half a percent up near $80 per barrel, while WTI futures were, too, trading half a percent in the green near $76 per barrel.
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