The rupee is headed towards another all-time low this month as demand for the greenback continues. The rupee breached the Rs 57 mark per dollar in afternoon trades on Friday due to demand for the greenback from oil importers, said currency traders.
At 1:40 PM the rupee was quoting at Rs 57.06 against the dollar compared with previous close of 56.85. The Indian currency has weakened more than 5.5% against the dollar since the beginning of May. The rupee is now very close to its all time record low level of Rs 57.33 hit intra-day on June 22 last year.
The street is expecting that the rupee may touch a new all-time low soon as the Reserve Bank of India (RBI) may not intervene. “The RBI would not like to sell dollars due to the country’s unhealthy reserves position and aggressive buying will also not take place due to lack of robust inflows and the high cost of infusing liquidity,” said Abhishek Goenka, founder and CEO, India Forex Advisors in a report. The report also added that since we have seen increased risk aversion across the globe and slowdown of growth in emerging markets, we would continue to see a depreciating trend for the rupee ahead.
