This week, the rupee came to the new low of 87.49 in the intra -day business against the US dollar on Wednesday due to concerns of the RBI cutting 25 basis points cuts and at the end of the trading, it closed at the new low of 87.46 against the US dollar due to concerns. Happened.
The meeting of the Monetary Policy Committee of the Reserve Bank of India is going on to fix the policy rates and its findings will be released on Friday. Dealers said the rupee has declined due to the weak dollar index and strong Asian currencies due to the stop-loss trigger.
Public sector banks sold dollars from the central bank in the foreign exchange market, which helped to prevent further decline of rupee. The rupee closed at 87.46 per dollar on Wednesday, while the rupee was 87.12 per dollar on Tuesday.
Nomura has said in a report, “We will maintain the stance that the Reserve Bank will fulfill the expectations but no one is going to take any action.”
The market partners have said that the rupee is now going to reach 87.50 against the dollar and how much it has to decline is not decided as it is partly increased volatility due to partially global trade stress.
The treasury head of a private bank said, ‘The market now expects the rates to cut rates up to 25 basis points. The rupee was around 87.30 per dollar, but the stop loss had started and we were about to look at the level of 87.50 per dollar.
The rupee was one of the worst performing Asian currencies on Wednesday, with a decline of 0.40 per cent during the day. South Korean Won, Philippines Peso and Malaysian Ringit also fell by 0.5 per cent. The dollar index also fell 0.4 per cent to 107.80 on Wednesday. It measures the strength of the dollar against the six major currencies.
Market partners said that if the rate cuts are announced on Friday, the rupee can reach 88 against the dollar. The government bank dealer said, ‘The rupee had touched the level of around 87.50 today. Now the level of 88 rupees per dollar is also not far away. If the rates are cut on Friday, it will also be possible.