• Rupee hits an all-time low of 77.69 against dollar, Markets eye for RBI's intervention

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    Rupee hits an all-time low of 77.69 against dollar, Markets eye for RBI's intervention

    If the currency suffers further losses during the session, traders will look for central bank intervention.


    Digital Desk: Early on Tuesday, the rupee fell to a fresh all-time low of 77.69 against the dollar, with traders looking for signals to fund flows in the local stock market, even investors trimmed bets on whether interest rate hikes will drive additional dollar gains.


    This week, the greenback has recovered from a two-decade high and was somewhat weaker across the board in early Asia trade. In contrast, key support for the dollar, US bond rates have dropped slightly as traders believe aggressive near-term hikes may stifle longer-term development.


    After touching a new intra-day poor level of 77.63 against the US dollar, the rupee dropped 14 paise to 77.69 in early trade on Tuesday, down from a previous record low of 77.50 on Thursday.


    The currency rose to 77.31 on Friday as the RBI intervened in the open market to prevent further losses. Because of the Buddha Purnima holiday, India's foreign exchange (FX) market was closed on Monday. The currency had previously broken through 77 against the dollar for the first time in March.


    Indian market indexes were trading higher, with all eyes on the state-run Life Insurance Corp's IPO later in the session, which is expected to be the country's largest.


    If the currency suffers further losses during the session, traders will look for central bank intervention.