The monetary unit traded at a record intraday low of 95.96/$, before reported central bank intervention salvaged some respectability for the battered local unit that is on course to remain among Asia’s weakest against the US dollar this fiscal year, too.
Currency hits a record intra-day low of 95.96 but rebounds with likely RBI intervention
Following reported central bank dollar sales, the rupee clawed back to close at 95.76/$, marginally weaker than its previous close of 95.70/$. Dealers said a Bloomberg News report stating that the government was considering a significant reduction in taxes paid by foreign investors on Indian bonds also contributed to the back-loaded advance for the rupee through an eventful Thursday.
“This is a play on when the strait of Hormuz opens. If taxes for FPIs are cut, there may be some long-term investors coming in, but I do not expect materially large inflow into bonds,” said Anindya Banerjee, head of currency research, Kotak Securities.
The rupee traded in the range of 95.96/$ and 95.68/$ on Thursday. It has weakened nearly 3% in FY27 so far, sliding further from a near 11% slump in FY26. Banerjee expects the rupee to cross the 96/$ mark next week. “The play is now at 98/$,” he said.
