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Bloomberg
The Indian rupee touched another record low as foreign investors continued to sell the nation’s equities.
The rupee declined to as low as 80.06 per dollar on Tuesday before reversing losses as traders cited possible central bank intervention. The currency has been buffeted by nearly $30 billion of foreign outflows from the nation’s equities so far this year and concerns over a deteriorating current-account deficit amid elevated oil and commodity prices.
India policymakers have sought to arrest the currency’s decline with a raft of measures with a weaker rupee adding to imported inflation pressures. Other emerging market currencies are also feeling the heat as a hawkish Federal Reserve lures capital towards the US.
India’s central bank sees the rupee as moving toward its fair value and will step in to sell dollars from its reserves when it assesses a genuine shortfall. Traders cited RBI intervening in the forex market as the currency breached 80 to a dollar.