Rupee plunges to all-time low

West Asia tensions, US Treasury yields weigh

- SACHIN KUMAR

THE RUPEE PLUNGED to an all-time closing low of 83.54 against the dollar on Tuesday, weighed down by the simmering geopolitical tensions in West Asia and hardening of US Treasury yields. The local currency hit a lifetime low of 83.56 during intraday trade, but likely intervention from the Reserve Bank of India (RBI) prevented any further fall. It ended the day with a decline of 9 paise or 0.10%, surpassing its previous closing low of 83.45 recorded on Monday.

"RBI's presence was felt in the market Reduced volatility in the market suggested that RBI might have intervened in the market," Kunal Sodhani, vice-president - treasury, Shinhan Bank, told FE."Fading expectations of aggressive rate cuts by Fed had already pushed the dollar index above the 106 levels," he added.