The Indian rupee slid to an all-time low on Friday, closing at 85.9650 against the US dollar, down 0.2% for the week. This marked its tenth consecutive weekly decline, surpassing the previous record low of 85.9325 reached on Thursday.
The currency has faced consistent pressure from a strengthening dollar and weak capital inflows. The dollar index remained above 109, nearing a two-year high as markets awaited US non-farm payroll data, which could shape expectations for Federal Reserve rate cuts.
State-run banks, likely acting on behalf of the Reserve Bank of India (RBI), intervened to sell dollars on Friday, helping to limit the rupee’s losses, according to three traders cited in Reuters’ report.
Despite these efforts, analysts predict the rupee will breach the psychologically significant 86-level “sooner rather than later,” a foreign bank trader commented.
Persistent headwinds, including a surging dollar and global economic uncertainties, have weighed heavily on the rupee. However, the RBI’s routine interventions have provided some stability, cushioning its decline.
(With inputs from Reuters)
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