MUMBAI: The rupee weakened to its all-time low for the sixth consecutive trading session on Tuesday as a rise in US bond yields boosted the dollar and strong demand for the greenback from importers added to the lingering pressure on the local currency.
The rupee declined to 85.21 against the US dollar, eclipsing its previous record low of 85.12 hit on Monday. It ended the session at 85.20, down 0.1% on the day. RBI’s intervention, likely via dollar sales, again helped limit the rupee’s losses, traders said. However, the “RBI doesn’t seem to defend any level right now but is just curbing volatility, which signals steady rupee depreciation will continue,” a trader at a state-run bank said. A multitude of factors have hurt the rupee this quarter, including tepid capital flows, a widening of trade deficit, and concerns about slowing economic growth. reuters
