Since early October, the RBI has spent nearly $50 billion from its vast FX reserves to shield the rupee from the dollar's relentless strength
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The kitty, which had hit an all-time high of $704.885 billion in end-September, has been declining for multiple weeks now, at a time when the rupee has also been under pressure
The Reserve Bank of India's financial market regulations department informally communicated the instructions to banks, the bankers said
The dollar index edged down 0.05% to 107.01, not far off Thursday's one-year high of 107.15, its highest level since Oct. 4, 2023, with little data this week to dent its march higher.
The dollar index – which measures the currency against six major peers, including the yen and euro – fell to a low of 106.07 for the first time since Wednesday of last week, and stood at 106.18 at 0247 GMT.
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Ueda will deliver a speech at 0100 GMT, followed by a media conference at 0445-0515 GMT. It will be his first opportunity to speak directly on monetary policy since Donald Trump’s victory in the U.S. presidential election on Nov. 5.
Forex traders said the USDINR pair has shown significant volatility in recent sessions, with the rupee inching closer to its all-time low of 84.40.
The euro languished near an almost seven-month trough reached overnight, while the yuan wallowed close to a more than three-month low with Europe and China both particular targets of potential Trump tariffs.
The rupee dipped to 84.2950, inching past the previous all-time low of 84.28 hit on Wednesday
A strong greenback against major rivals overseas and unabated foreign fund outflows dented market sentiment, forex traders said
The rupee fell to 84.1950 against the dollar, down about 0.1% from its Tuesday close
Traders have ramped up their search for havens, analyzing latest polling data that shows no clear leader in the race between Kamala Harris and Donald Trump before Tuesday’s vote.
The rupee slipped to its all-time low of 84.11 against the dollar, inching past its previous record low of 84.0950 hit last week
The rupee declined to a record low of 84.0925 to the U.S. dollar, inching past the all-time low of 84.0900
Analysts said the selling rush by foreign investors in pursuit of better gains from the Chinese market has been preventing the rupee's recovery
India and Myanmar are working on a local currency trade settlement mechanism. Despite the bilateral trade being a negligible share of India’s overall trade, the challenges in creating a smooth settlement process here are a pointer to the larger issues which need to be addressed if the Rupee is to be used to settle trades with larger partners
However, sustained outflow of foreign funds and an upward momentum in the crude oil prices weighed on the local unit, forex traders said.
Forex traders said the rupee is likely to trade in a narrow range during the day as strong dollar and a muted tone in the domestic equities weighed on the local unit, while weak crude oil prices and any intervention by the Reserve Bank of India (RBI) may also support the local currency at lower levels.
Forex traders said the rupee is trading in a narrow range as the support from positive domestic equities is being negated by foreign fund outflows.
Forex traders said there has been significant foreign fund outflows and crude oil prices have surged by nearly 10 per cent, fueled by Hurricane Milton’s impact on US production along with the tensions in the Middle East between Israel and Iran.
RBI informally communicated the instructions to bankers via phone calls on Monday with the rupee at risk of breaching its record low of 83.9850 per U.S. dollar, the sources said
The $12.588-billion surge would be one of the highest weekly rises ever, and this is the first time the reserves have crossed the $700-billion mark
However, crude oil prices sliding to near $70 per barrel helped the local unit resist a steep fall, forex traders said.