Indian Rupee opens at all-time low of 83.06 against US dollar

The Indian rupee on Thursday fell 6 paise to an all-time low of 83.06 against dollar in early trade amid continuous foreign capital outflows and a strong US currency in the overseas markets.

On Wednesday, the Indian currency had breached the 83 per dollar mark to fall to a record low due to rising crude oil prices in the global market and on signs that strong inflation will keep major central banks firmly in rate-hiking mode, PTI reported.

It tumbled 60 paise to close at its lifetime low of 83.02 per dollar.

Bloomberg quoted the rupee at 83.0925 per dollar after opening at 82.9825 and hitting a new record low of 83.1212.

Analysts believe the Reserve Bank of India’s currency intervention is making the rupee less attractive for carry traders.

Reuters quoting traders reported that a sell-off in the currency had occurred in the last 1.5 hours of trading on Wednesday due to significant corporate dollar and custodian outflows.

The domestic currency’s “saving grace” following “yesterday’s disaster” is that it stayed largely unchanged at about the 83 levels after regular trading hours, a Currency Dealer at a Mumbai-based bank told Reuters.

“In initial trades, traders will be looking to assess how sticky this new big figure proves,” added the trader.