New Delhi: The rupee ended at a record low of 83.29 to the US dollar on Wednesday (November 9), after falling by four paise. On Tuesday, the rupee had ended the day at 83.25.
The previous record low of 83.29 was hit in October last year.
So far in 2023, the rupee has depreciated 0.7% versus the US dollar, Economic Times reported.
“Expectations that the Fed will keep interest rates high for longer has prompted a selloff in longer-maturity Treasuries and boosted the dollar,” a Reuters report stated. “The Fed is not expected to tweak rates on Wednesday but there are bets of one more rate increase in December.”
“Theoretically, low premiums make the RBI’s job in managing the rupee a bit more difficult. Importers may be more willing to hedge and betting against the rupee costs less,” Dhiraj Nim, a forex strategist and economist at ANZ, told Reuters. “Having said that, for that dynamic to play out, the market has to believe that the RBI will not keep the rupee at a particular level.”