The currency, which opened at 94.37/$ on Tuesday, traded with a negative bias throughout the day and touched its weakest point of 94.58/$. The RBI likely intervened at the weakest level, to contain further losses for the currency, traders said. “There is so much dollar demand that the rupee will not strengthen even moderately if the RBI does not intervene. We can see new lows if oil prices remain at these elevated levels,” said Anil Bhansali, head of treasury, Finrex Treasury Advisors.
He expects the rupee to trade between 94.25/$ and 94.75/$. The rupee’s record low closing level stands at 94.83/$. Brent was up 4.1% on Tuesday at $112.70 a barrel, reports Reuters. “There was one way movement in the rupee on Tuesday. Between uncertainty of the trade deal and high oil prices, the sentiment is negative,” said a trader from a public sector bank.
