Rupee recovers from all-time low, weakness likely to persist
On Tuesday, the Indian rupee recovered from its all-time low against the dollar, and settled for the day with gains of just 3 paise at 84.69. The rupee was at a record low of 84.73 versus the dollar on Monday.
Amid uncertainty, experts feel that the weakness in the rupee is expected to persist.
“The timing of a rupee reversal is unpredictable and contingent on a number of variables. For instance, it might gain from a downturn in the US economy or a weakening of the US currency. The rupee can be stabilised with the support of stronger economic development and better export results. The rupee can also be supported by the Reserve Bank of India intervening in the foreign exchange market, although this is a temporary solution,” said Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.
