New Delhi: The Indian rupee fell to an all-time low on Thursday, driven by strong dollar demand from importers needing to meet immediate and future payments. The rupee dropped to a historic low of 83.9850 against the US dollar, slightly surpassing its previous worst of 83.98. Despite the plunge, traders noted that the losses could have been more severe if not for intervention from the Reserve Bank of India (RBI).Step to stabilize the currencyTraders credited the RBIs efforts in stemming a more dramatic fall of the rupee. Active intervention from the central bank helped stabilize the currency, preventing a larger depreciation in the face of mounting pressure from dollar demand. This intervention, through the sale of US dollars, played a crucial role in propping up the rupee.RBI intervenes to revive RupeeInterestingly, the rupees record drop occurred despite a weakened US dollar in global markets. The greenback faced pressure from market expectations of a dovish stance from the Federal Reserve, yet it wasnt enough to offset the strong demand for dollars by Indian importers.The rupees continued depreciation could pose challenges for the Indian economy, especially for inflationary pressures on imported goods. Analysts suggest that ongoing intervention by the RBI will be key to managing the currencys value in the short term, but further weakness could be seen depending on global financial conditions.
