The Indian rupee ended at record closing low again on Tuesday as it weakened by seven paise to close at 86.65 against the US dollar.
At market open, the rupee strengthened slightly against the greenback at 86.52 as both the US dollar index and oil prices eased during the Asian trading session. During the day, the domestic currency weakened to reach an intraday record low of 86.70, according to Bloomberg data.
The currency has depreciated by 73 paise over the last two days. On Monday, it closed at 86.58.
The Reserve Bank of India is adopting a flexible approach to the Indian rupee and does not intend to target specific levels for the currency. The central bank has sufficient reserves to manage excessive volatility in the foreign exchange market, according to sources who spoke to NDTV Profit on Tuesday.
Currently, the RBI is in a wait-and-watch mode, monitoring developments ahead of US President-elect Donald Trump's inauguration on Jan. 20. Trump's promise of wide-ranging import tariffs has raised concerns about potential disruptions to global trade.
The RBI recently underwent a leadership change with Shaktikanta Das stepping down after a six-year tenure. He has been succeeded by Sanjay Malhotra, who previously served as India's revenue secretary before taking charge as the new RBI governor.
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