All eyes on RBI as fresh fall brings rupee closer to 90

The Indian rupee came within kissing distance of 90 to a dollar on Tuesday before likely central bank intervention rescued it from the brink, but not before it touched a new all-time low.

- Subhana Shaikh

The currency fell for the fifth straight day on steep demand from importers and foreign portfolio investors, shedding 42 paise to close at a record low of 89.87 against the dollar.

During the day, the rupee fell further to 89.9475; however, as it neared 90 to a dollar, state-owned banks stepped in to sell dollars and capped its fall, traders said, likely on behalf of the Reserve Bank of India (RBI).