The rupee reaches a new intraday low of 76.55
Mumbai: the rupee On Thursday it hit a new record low of 76.55 in intraday trading, even as equity markets rebounded. Dealers said they had increased volatility as sentiment was largely negative.
In a risk-averse situation, the funds will gravitate toward US Treasury bonds and continue to win as long as uncertainty exists, an executive at a private bank said. The local unit opened at 78.11, but slipped sharply into the thin trade. However, it closed at 76.29, an increase of 5 countries over its previous close of 76.34.
Bankers said that while there have been some inflows of dollars through the investment path, it is unclear whether they can be sustained since the crisis does not appear to have peaked. The RBI has reduced trading hours as banks are struggling to staff their trading rooms and many bankers are operating remotely with some connectivity issues.
“The pace of depreciation in the rupee has weakened due to lower rate of outflows and increased RBI intervention. Over the next few weeks, the key data to watch will the infection curve of Covid-19, followed by any signs of whether the second wave is emerging in China or not. If the curve continues to flatten across the globe, then it will help the rupee recover lost ground. Otherwise, the local currency can continue to inch towards 77.50 levels,” said Anindya Banerjee, DVP, currency derivatives & interest rate derivatives, at Kotak Securities .