The rupee on Wednesday sank to a record low of 84.09 against the dollar because of weakness in Asian currencies and persistent FPI outflows but ended range-bound on suspected intervention from the Reserve Bank of India (RBI).
At the inter-bank forex market, the domestic unit settled at 84.08 to the greenback unmoved from its previous close.
After opening marginally stronger at 84.07, the rupee fell to 84.09 as Asian currencies came under pressure.
Dealers attributed this to increasing prospects of Donald Trump winning the US Presidential elections. A victory for the Republican nominee is seen as positive for the dollar. It resulted in the Chinese yuan reportedly dropping to more than a two-month low.
Forex circles said the month-end demand for the dollar also kept up the pressure on the rupee.
Moreover, foreign portfolio investors (FPIs) have also been on the sale mode in October.
Provisional data from the stock exchanges showed them divesting stocks worth ₹4,614 crore on Wednesday. So far in October, they have sold stocks worth $10.94 billion.
However, the rupee’s fall has been contained due to intervention from the RBI. This has resulted in the unit moving in a narrow range.
``We expect the rupee to trade with a mixed to negative bias on weak domestic markets and sustained FII outflows. Month-end dollar demand from importers may further weigh on the rupee," Anuj Choudhary, research analyst at Sharekhan by BNP Paribas, said.
"However, softening of US dollar amid disappointing jobs markets may support the rupee at lower levels. Traders may watch out for third quarter 2024 GDP data and non-farm payrolls report from the US this week."
Gold record
Gold prices saw a steep surge of ₹1,000 and breached the psychological ₹82,000 per 10 grams-mark for the fist time in the national capital on Wednesday amid robust buying by jewellers ahead of Diwali, reports PTI.
According to the All India Sarafa Association, gold of 99.9 per cent purity soared ₹1,000 to hit a fresh peak of ₹82,400 per 10 grams in Delhi.
Silver also jumped ₹1,300 to ₹1.01 lakh per kg against the previous close of ₹99,700 per kg.
