Rupee falls to a new low on importers demand, corporate outflows

On Thursday, the Indian rupee closed at a new low of Rs 83.65 against the US dollar due to heightened demand for the dollar from local importers and corporate outflows, according to dealers. Earlier in the day, the rupee hit an intraday record low of Rs 83.67 per dollar. \r

The Reserve Bank of India (RBI) intervened in the forex market by selling dollars during the final hour of trading, which helped to partially reverse some of the losses. Market participants noted that the rupee's depreciation was exacerbated by the RBI's initial absence from intervention, alongside the strengthening US dollar and weakening Chinese yuan. \r

Despite recent declines, expectations are for the rupee to find support in the near term, buoyed by anticipated inflows into the debt segment following JP Morgan's bond index inclusion starting June 28. Market analysts predict the rupee to trade between Rs 83.35 and Rs 83.90 per dollar.