Rupee nears 54-level, some predict RBI intervention

The rupee falls to a fresh one-month low at 53.9750 versus its previous close of 53.41/42 on the back of heavy dollar buying by oil firms, the largest buyers in the domestic currency market.

Traders say some dollar sales were seen from exporters, but the demand from oil firms was too strong.

The breach of the 53.80 level paves the way for further losses towards 54.20 but resistance is expected around the psychological level of 54, dealers say.

Traders say the RBI could step in to support the rupee should USD/INR significantly surpass the 54 level, given the quickness of the day's move.

 

Domestic shares also extend drop and trading down 0.9 percent on day.