By Jaspreet Kalra
MUMBAI (Reuters) – The Indian rupee fell to a record low on Monday but losses were limited due to likely intervention by the Reserve Bank of India (RBI). The rupee closed at 84.0725 against the U.S. dollar, slightly down from the previous day’s 84.0650.
Foreign banks were seen purchasing dollars, possibly for their clients. However, consistent dollar sales from state-run banks helped stabilize the rupee.
Foreign investors have withdrawn over $9 billion from Indian stocks this month, exceeding the previous record of $8.35 billion in March 2020.
Indian stock indices ended lower, down about 4% in October. Meanwhile, most Asian currencies fell by up to 1%, and the dollar index increased to 103.7, up nearly 3% this month due to expectations of slower rate cuts from the Federal Reserve and rising chances of a Donald Trump victory in the upcoming U.S. presidential election.
Investors are awaiting comments from Federal Reserve officials for hints on future interest rate policies. The 1-year dollar-rupee forward premiums rose by 5 basis points to 2.24% following comments from RBI chief Shaktikanta Das, which led traders to rethink a possible rate cut in December.
(Reporting by Jaspreet Kalra; Editing by Mrigank Dhaniwala)
