The rupee weakened to its all-time low on Wednesday, pressured by expectations that the Reserve Financial institution of India will minimize rates of interest later this week, whereas greenback demand from importers additionally weighed.
The rupee fell to 87.35 in opposition to the U.S. greenback, eclipsing its earlier lifetime low of 87.28 hit on Monday and was down almost 0.3 per cent on the day.
- Additionally learn: Rupee to slip in the direction of 88 in opposition to the greenback: Financial institution of America’s Rahul Namjoshi
Whereas a softer greenback benefited most Asian currencies on Wednesday, the rupee was an underperformer as merchants positioned for the primary RBI fee minimize in almost 5 years. The greenback index was down 0.3 per cent at 107.7.
Greenback demand from importers additionally weighed on the rupee, whereas intermittent greenback gross sales from state-run banks helped maintain a lid on losses, merchants mentioned.
Along with expectations of a fee minimize, the rupee has additionally remained beneath strain on account of persistent overseas portfolio outflows. Abroad traders have web offered $8 billion price of native shares and bonds in 2025 to date.
