Rupee Closes Record Low Amid Steady Crude Prices
Rupee closed flat at Rs 83.66 after having opened at Rs 83.63 against the greenback, according to Bloomberg. It had closed at Rs 83.66 on Thursday.
The Indian rupee ended flat at a record closing low on Friday amid steady crude oil prices, even as the Reserve Bank of India remained focused on controlling inflation as per its latest commentary.
The local currency closed flat at Rs 83.66 after having opened at Rs 83.63 against the greenback, according to Bloomberg. It had closed at Rs 83.66 on Thursday.
The US Dollar Index was at 104.33, and the Brent crude oil price was trading at $84.98 per barrel. Oil prices remained steady amid mixed crude demand signals, US economic slowdown concerns, and Federal Reserve expectations of interest rate cuts.
The Reserve Bank of India stated that it is looking to lower inflation to the 4% target rather than easing monetary policy to support economic development in the short term.
"The rupee has been weakening considerably in the last two days, despite good inflows (into stocks), because the outflows on various (other) counts have been higher. Yesterday it was defence payment," said Anil Kumar Bhansali, head of Treasury and executive director of Finrex Treasury Advisors LLP.
"Exporters to now sit tight and watch while importers hit the stop loss of Rs 83.60 and keep buying all dips," he said.
