MUMBAI: Rupee continued to plumb more depths closing the day in the red again falling to 84.0725 against the dollar, losing 0.8 paise from the previous close of Friday. But analysts see no worries about the fall saying crossing 84 level is not alarming.
The rupee had for the first time crossed 84 level last Friday, closing at 84.06 after hitting 84.11 as foreign investors continued to sell equity and debt and globally the greenback has been gaining.
Foreign investors have offloaded $8 billion over last 10 sessions, mostly in stocks and about $125 million in bonds. China’s stimulus has redirected investment flows, with some foreign investors going on record saying time to buy into the Middle Kingdom and sell India’ which have contributed to the rupee’s downward trend.
In spite of these factors, RBI governor Shaktikanta Das last week said rupee remains one of the least volatile currencies among emerging market peers, reflecting the country’s strong macroeconomic fundamentals.
Addressing media during post-policy presser, he said there is no alarm arising from rupee volatility and no concern about it at all. Rupee fell to an all-time low of 84.0725 on Monday, weighed down by dollar demand from foreign banks, likely for their custodial clients. Rupee had dipped to 84.07 on Friday.
