Rupee slips to an all-time low of 83.9850 to US dollar

The Rupee has declined to an all-time low of 83.9850 to the US dollar

Indian Rupee has declined to an all-time low of 83.9850 to the US dollar on September 5, weighed by demand for dollar from importers.

With the fall, INR has inched past the previous low of 83.98 against the Dollar.

The fall would have been greater had the central bank not intervened, Reuters reported, quoting forex traders. The report also noted high dollar demand from importers to meet immediate and futures payments. RBI's intervention is likely aimed at preserving the exchange rate competitiveness, according to experts. The Rupee has been one of the least volatile emerging market currencies this year after central bank’s repeated interventions.

Governor Das has highlighted Rupee's lower volatility, crediting it to India’s economic and financial stability, adding that the growth drivers for the economy are gaining momentum.

A Reuters poll of forex analysts on September 5 has shown that the Indian rupee is likely remain in a narrow trading range over the coming year versus US Dollar, as RBI continues to intervene in the market to keep a check on volatility.

"The RBI has got the formula that has worked well for them ... they would continue with their two-sided intervention of buying and selling FX to keep the rupee in that narrow range and continue to test this 84 level where the RBI has sort of drawn a line in the sand," Reuters quoted Dhiraj Nim, economist at ANZ on September 5.

Most Asian currencies have rallied in recent weeks on bets the US Federal Reserve is poised to start cutting interest rates. A Federal Open Market Committee (FOMC) meeting is scheduled later this month, and the minutes of the last FOMC meeting showed a strong convergence among members on the rate approach, with a 'vast majority' of them agreeing to a cut.

India's foreign exchange reserves have hit a record high of $681.69 billion as of August 23, as per data from the central bank.