At 83.14/$, rupee nears record low


MUMBAI: The rupee declined by 10 paise on Wednesday to end at 83.14 against the dollar – just 1 paise short of its all-time closing low of 83.15. However, forex dealers are not bearish on the local currency.
“These are good levels to sell the dollar because the lifetime low (intraday) was 83.17 this year and 83.25 last year. I am advising exporters to sell,” said K N Dey, managing partner, United Financial Consultants. The rupee had closed at a lifetime low of 83.15 on August 17.

According to Dey, the rupee has remained steady despite a weakening dollar and the Chinese yuan falling by 8-9%. “On September 1, 2022, the dollar index was 114, and the rupee was at 82/$. The dollar index then fell to 100 before rebounding to 104. During this period, the rupee has moved by just 1.5%,” he said.
With the monsoon on track and forex flows resuming, the exchange rate could return to around 82.5. “It is clear that capital flows are supporting the rupee, and there is a well-guarded plan by RBI to maintain a band that provides a lot of comfort to Indian markets – with the range likely to be between 82.5 and 83.5,” Dey added. Meanwhile, the Chinese yuan hit a 10-month low before recovering some ground.

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