Indian rupee hits record low for 8th straight session

The Indian rupee ended at its lowest closing level ever for the eighth consecutive session on Thursday, as an increased arbitrage between the non-deliverable and outright forwards market compounded the currency’s woes.

The rupee ended the day at 85.7525 against the US dollar, a 0.1 per cent decrease. Despite hitting a low of 85.79, the rupee was supported by potential dollar-selling intervention from the Reserve Bank of India (RBI), according to traders.

State-run banks were seen offering dollars near the 85.78-85.79 levels, with the RBI intervening strongly at these levels last week when the rupee hit a record low of 85.8075.

On that day, despite gains in most Asian currencies, the rupee struggled due to increased dollar demand from banks taking advantage of arbitrage opportunities between the NDF and onshore over-the-counter (OTC) markets.

Attribution: Reuters

Subediting: Y.Yasser