India's forex reserves slumped to the lowest in over two years, marking the third straight week of decline as the RBI intervened to keep the rupee from weakening past 80 per dollar.
Rupee Today: The rupee ended Wednesday with gains, reversing early losses as traders remained cautious about placing large bets ahead of US inflation data.
The rupee is in for a rough ride ahead, with the next key psychological level of 80 per dollar almost a done deal after a blowout US inflation print, which will boost the already-rampant dollar further.
The rupee declined by 9 paise to settle at a new record low of 79.90 against the US currency on Thursday due to a firm US dollar in overseas markets and capital outflows.
The rupee tumbled on Friday to a new all-time low of 77.93 against the dollar with expectations of aggressive tightening from the US Federal Reserve after data showed inflation jumped to a more than four-decade high.