(Bloomberg) -- The Indian rupee saw a record low close of 83.29 per dollar Wednesday before pulling back Thursday, but strategists say a sustained break of its recent trading range is needed before momentum traders jump on the trend.
The rupee has been trading within a narrow range of less than 30 paisa (less than a US cent) over the last four weeks, becoming the world's least-volatile currency. And, that's guided by the central bank's intervention as it seeks to curb imported inflation for a net-energy importing nation. QuantArt Market Solutions said the market continues to be stable.
“This will not count as a change of level, it's a sporadic one-off trade and in the minds of traders, it's the same” said Samir Lodha, chief executive officer at QuantArt Market Solutions in Mumbai.
The rupee is still among the top performers in Asia this year, on the back of inflows into equities and bonds. The currency is down just 0.6% against the dollar in 2023 and is Asia's second-best performer, while others from Malaysia's ringgit to the South Korean won have slipped far more.
The currency was steady at 83.2650 intraday on Thursday, near its previous record low of 83.2912 touched in October 2022, and again matched last month.
Analysts at MUFG Bank note that the Indian rupee was “close to unchanged” for the entire month of October in a note, retaining their forecast for it to trade at 83.70 in three months.
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