The Indian rupee hovered near 96 per US dollar in a volatile Thursday session driven by persistent foreign fund outflows, oil-fueled inflation, and worsening balance of payments concerns. It hit a record intraday low of 95.96, then partially rebounded after reported central bank intervention via dollar sales. The rupee still closed weaker at 95.76, and dealers linked momentum to a Bloomberg report suggesting potential tax reductions for foreign investors in Indian bonds, which may impact longer-term inflows.
The Indian rupee weakened to a new all-time low for the third straight day as crude oil prices surged and dollar demand rose. Even with steps aimed at cutting gold imports, the currency slid sharply, reflecting broad pressure on FX markets. Traders expect more volatility, with the Reserve Bank of India likely to intervene to limit further losses.
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