Firm crude oil prices and a strong dollar again pulled down the rupee resulting in the domestic currency ending at a lifetime low of 83.22.

The rupee has thus come within a striking distance of the all-time intra-day low of 83.29 on October 20, 2022.

Forex circles feel the currency is likely to remain under pressure and it may test these levels, though much will now depend on whether the Reserve Bank of India (RBI) will aggressively intervene in the market.

At the inter-bank forex market, the rupee opened at 83.15 against the dollar and traded in the range of 83.12 to 83.22. It ended at the lowest level of 83.22 thus registering a fall of 8 paise from its previous close.

This came as the US currency gained on safe-haven demand amid disappointing news from China. Trade data from the country showed its exports dropping 8.8 per cent in August from a year ago, while imports in dollar terms softened 7.3 per cent.

Though this was better than a forecast from a Reuters poll, it indicated the slowdown being faced by the world’s second largest economy. As a result the dollar strengthened against other global currencies.

This was reflected in the US dollar index which gauges its strength against six other units. The dollar index opened on a firm note at 104.86 and rose to a day’s high of 105.15.

Meanwhile, Brent crude futures was trading at $90.24 a barrel against its previous close of $ 90.60.

“The USD-INR spot closed 8 paise higher at 83.22. Weakness in equity markets, rising US dollar index and a slump in the Chinese external trade, are all weighing on the sentiments.”

“Over the near term, we could see USD-INR cross the current all time high of 83.29 and head higher towards 83.60/80 levels,” Anindya Banerjee, VP — currency derivatives & interest rate derivatives at Kotak Securities said.