Rupee touches new low of 81.25 against US Dollar

Mumbai, Sept 23: The rupee touched a new intraday low of 81.25 per US dollar in the first few minutes of trade on Friday. At 09:25 am IST, the local currency was trading at 81.13. The rupee had plunged 1.1 per cent against the dollar on Thursday, closing at a record low of 80.87 per dollar.

A lack of significant dollar sales by the Reserve Bank of India (RBI) despite a steep decline in the rupee on Wednesday also made traders jittery as they awaited cues on the central bank’s future intervention strategy, dealers said.

The rupee has suffered to a greater degree than its emerging market peers, leading to speculation that the central bank was letting the currency adjust to the new reality of US interest rates staying higher for longer. Following market interventions since late February, the RBI’s foreign exchange reserves are currently at a two-year low of around $550 billion

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