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Our Bureau

Mumbai, Nov 20

The rupee continued to slip against the US dollar, though intervention from the Reserve Bank of India in the market helped reduce the loss.

On Thursday, the rupee opened at a record low of 50.4850. It touched 50.60 during the day on heavy dollar buying, as the domestic equity market and other Asian equity markets weakened. The rupee closed at all-time low of 50.20, against the previous close of 50.01/02. Public sector banks were seen selling dollars when the rupee crossed 50.55, said a dealer. There was RBI intervention throughout the day, to ensure that the rupee does not cross 50.50/55 levels. There was dollar buying to take advantage of the arbitrage in the overseas NDF (non-deliverable forward) market, where the difference is over Re 1, said a chief forex dealer with a private sector bank.

Any further movement of the rupee will depend on the RBI’s stance, the dealer added.

“If the RBI is determined, the rupee will not cross 50.55. But otherwise 52 levels could be seen shortly,” he said.

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