The Indian rupee continued its downward trend on Monday, falling to a record low of 90.75 against the US dollar in the middle of the session. In the early Asian trading, the local currency fell to a record low of 90.56 and has since continued to decline. The local currency dropped 0.1% from Friday’s historic-low closing of 90.42 to open at a record low of 90.45 against the dollar.
In early Asian trading on Friday, the rupee hit a record low of 90.55 against the US dollar. With a year-to-date decline of almost 6% against the US dollar, the Indian rupee has been among the worst-performing Asian currencies.
The rupee’s next support level is 90.80, following which a crossing between 91 and 92 may occur. It is evident that the RBI has let the market to set the price and has only intervened to limit excessive volatility.
As investors anticipate a quarter-point rate drop by the central bank, which could have an impact on the Indian rupee, the market will also be focused on the widely anticipated rate cut by the Bank of Japan.
