The Indian rupee weakened by 5 paise against the US dollar to a new low of 84.5038. According to Bloomberg data, it closed at 84.4525/dollar on Wednesday.
This fall in the rupee reflects the ongoing fluctuations in the foreign exchange market. On Wednesday morning also, the rupee opened 5 paise weaker at 84.39 against the US dollar.
Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors, says that the range of rupee for the day is expected to be between 84.30 and 84.50. Bhansali said that exporters are waiting for a possible decline by setting a stop loss at 84.25, as the rupee is under pressure due to the continued demand for the US dollar.
On the other hand, he said that importers are advised to buy on dips. The rupee witnessed weakness on Wednesday, which was mainly due to the demand for the dollar. Bhansali said that the Reserve Bank of India intervened in the market and sold dollars when the rupee reached the level of 84.47, due to which the rupee showed a slight improvement and it reached 84.39 and finally closed at 84.4525.
