<p>New Delhi: The Indian rupee hit a fresh new low on Monday, slipping below the 95-mark against the US dollar for the first time, even as the RBI announced measures to curb speculative trading <br>activities.</p><p>The rupee started Monday trading on a positive note up by 1.3%, from the record low of 94.85 on March 27. However, the relief proved short-lived. The Indian currency slipped below the psychologically-important 95-mark and hit a new record low of 95.23 against the dollar intra-day. It settled the day marginally higher at 94.70.</p><p>The rupee witnessed volatile trading, despite the RBI’s intervention. In an order issued on Friday, the RBI has directed all banks to limit their net open position on the Indian currency (NOP-INR) in the onshore deliverable market to be within $100 million at the end of each business day.</p><p>This has been regarded as an unusual move by the central bank in an attempt to clamp down on currency volatility.</p><p>“Even though the RBI directive will curb excessive speculation in the futures market, this is insufficient to prevent the weakness in the currency which stems from the rising trade and CAD triggered by the spike in crude and sustained FPI selling in the market,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.</p>.RBI should use forex reserves to prop up rupee: SBI report.<p>The Indian currency has weakened by around 4% since the beginning of the US-Israel-Iran conflict at the end of February.</p><p>Meanwhile, Union Finance Minister Nirmala Sitharaman claimed that the Indian economy is strong and the rupee depreciation is in line with the weakness in other Asian <br>currencies.</p><p>“India’s economy is strong, our fiscal situation is strong, and the entire world is praising our fiscal deficit management. Our forex reserves are solid,” Sitharaman said replying to a supplementary question <br>in the Lok Sabha on rupee <br>depreciation.</p><p>“Compared to other emerging economies, the rupee is doing fine, absolutely going fine,” she said, adding that the depreciation is not specific to the Indian currency, as major other Asian currencies have also depreciated.</p><p>“The $700 billion-plus external reserve, we believe, is sufficiently strong to deter speculative moves and reposition rupee to levels that enhance export competitiveness sans imposing a burden on the country,” SBI Research said in a note.</p>
<p>New Delhi: The Indian rupee hit a fresh new low on Monday, slipping below the 95-mark against the US dollar for the first time, even as the RBI announced measures to curb speculative trading <br>activities.</p><p>The rupee started Monday trading on a positive note up by 1.3%, from the record low of 94.85 on March 27. However, the relief proved short-lived. The Indian currency slipped below the psychologically-important 95-mark and hit a new record low of 95.23 against the dollar intra-day. It settled the day marginally higher at 94.70.</p><p>The rupee witnessed volatile trading, despite the RBI’s intervention. In an order issued on Friday, the RBI has directed all banks to limit their net open position on the Indian currency (NOP-INR) in the onshore deliverable market to be within $100 million at the end of each business day.</p><p>This has been regarded as an unusual move by the central bank in an attempt to clamp down on currency volatility.</p><p>“Even though the RBI directive will curb excessive speculation in the futures market, this is insufficient to prevent the weakness in the currency which stems from the rising trade and CAD triggered by the spike in crude and sustained FPI selling in the market,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.</p>.RBI should use forex reserves to prop up rupee: SBI report.<p>The Indian currency has weakened by around 4% since the beginning of the US-Israel-Iran conflict at the end of February.</p><p>Meanwhile, Union Finance Minister Nirmala Sitharaman claimed that the Indian economy is strong and the rupee depreciation is in line with the weakness in other Asian <br>currencies.</p><p>“India’s economy is strong, our fiscal situation is strong, and the entire world is praising our fiscal deficit management. Our forex reserves are solid,” Sitharaman said replying to a supplementary question <br>in the Lok Sabha on rupee <br>depreciation.</p><p>“Compared to other emerging economies, the rupee is doing fine, absolutely going fine,” she said, adding that the depreciation is not specific to the Indian currency, as major other Asian currencies have also depreciated.</p><p>“The $700 billion-plus external reserve, we believe, is sufficiently strong to deter speculative moves and reposition rupee to levels that enhance export competitiveness sans imposing a burden on the country,” SBI Research said in a note.</p>