Rupee breaches 84 as oil prices, foreign outflows put strain - Times of India
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MUMBAI: The rupee breached the 84/dollar mark for the first time Friday, settling at 84.06, down 12 paise from Thursday’s close of 83.94. Opening at 83.98, the currency touched an intraday record low of 84.07. The breach of the 84 level is significant as RBI had defended this threshold for over two months. Friday’s intervention marked the central bank’s continuing efforts to prevent sharp volatility in the currency market.Some dealers feel RBI may have allowed the rupee to cross 84 for tactical reasons, anticipating more volatility in coming days should the Iran-Israel conflict escalate. The continued strength of the dollar, driven by dimmed expectations of a 50-basis-point rate cut from the US Federal Reserve in Nov, has also contributed to the rupee’s weakness. Rising crude prices , FPI outflows put pressure on Rupee Allowing the rupee to weaken now will give RBI more room to intervene if there is volatility next week. While other Asian currencies have appreciated aroun...