Rupee’s Brief Dalliance With Record Low Yet to Crack Tight Range
- Central bank intervention has ensured a steady currency
- Traders not taking record low close as sign of major change
A bank teller counts Indian 200 rupee banknotes in Mumbai, India.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
The Indian rupee saw a record low close of 83.29 per dollar Wednesday before pulling back Thursday, but strategists say a sustained break of its recent trading range is needed before momentum traders jump on the trend.
The rupee has been trading within a narrow range of less than 30 paisa (less than a US cent) over the last four weeks, becoming the world’s least-volatile currency. And, that’s guided by the central bank’s intervention as it seeks to curb imported inflation for a net-energy importing nation. QuantArt Market Solutions said the market continues to be stable.