Rupee Declines 9 Paise To Settle At All-Time Low Of 83.21 Against US Dollar

The rupee declined for the fourth straight day and settled 9 paise lower at its lifetime low of 83.21 (provisional) against the US dollar on Thursday amid a strong American currency and soaring crude oil prices.

Positive trend in the domestic equity markets, however, provided a cushion to the rupee, according to forex traders, as per a PTI report.

Crude oil breached the USD 90 per barrel-mark after oil producing countries agreed to extend supply cut till December this year while dollar stayed firm on safe-haven demand.

According to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, "Dollar was well bid against the rupee on a low volume day with most corporates on holiday due to the festival. The rupee almost touched it's all time low of 83.2350 as the dollar index flew higher towards 105 levels while Brent oil was stationary around $ 90.19 per barrel. Asian currencies were all in small range except CNH which weakened to 7.3329. RBI may have been protecting the rupee though we did not see signs of their presence."

"The twin worries of China slowdown and the prospects of higher interest rates in US have proved hard to shift causing unease amongst investors. Lackluster trading seems to be the order of the day given the fact that there is little to pin on optimism for now. Dovish comments from BOE Governor have sent the pound lower below 1.25, a level not seen since June. Halifix data showed UK house prices tumbling amid rising mortgage costs," added Anil Kumar Bhansali.