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Rupee likely to stay near record lows due to high dollar demand

The Indian rupee faces renewed pressure this week, with traders expecting it to stay near its record low against the U.S. dollar. The rupee closed last week at its weakest level ever. Month-end dollar demand is a significant factor contributing to the rupee’s decline. However, the Reserve Bank of India (RBI) is likely to intervene to prevent any sharp drops. Traders expect the rupee’s decline to be gradual, with intra-day movements staying muted. State-run banks are expected to offer support, keeping the USD/INR pair within the range. Read more to find out about the rupee intervention.

more about rupee intervention

Disclaimer:

Given these dynamics, the rupee is expected to experience a cautious decline, with central bank support likely to prevent any steep falls. Monitoring the Federal Reserve’s policy decisions will be crucial for gauging the rupee’s future trajectory.

Publication date:

2024-07-29 15:24:02 (GMT)

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