The Indian rupee continued to weaken against the U.S. dollar on Thursday, as the strength of the foreign unit and the benchmark bond yields continued to weigh on investor sentiment.
The local currency weakened 19 paise to close at 83.15 against the U.S. dollar on Thursday. It closed at 82.96 on Monday. In the past, it had tested all-time lows of 83.29 against the dollar in October 2022, on an intraday basis.
The forex market was shut on Aug. 15 on account of Independence Day and on Aug. 16 for the Parsi New Year.
The rupee was trading at 83.15 due to rise in the U.S. bond yields and fall in the Chinese currency, said Anindya Banerjee, vice president, currency derivatives and interest rate derivatives, Kotak Securities Ltd. "We suspect RBI may have intervened and sold dollars," he said.
The rupee has weakened on the back of dollar strength, against all major as well as emerging market currencies as well as the risk-averse sentiment at the global level, said Ritesh Bhansali, vice president, Mecklai Financial Services Pvt.
"Over the near term, bias remains upward and we could see the rupee breaching 83.24, previous all-time highs," Banerjee said, forecasting the rupee to trade in a range of 82.90- 83.80 in the spot market.
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