Key Points
MUMBAI: The rupee breached the 84/dollar mark for the first time Friday, settling at 84.06, down 12 paise from Thursdays close of 83.94..
The breach of the 84 level is significant as RBI had defended this threshold for over two months..
Some dealers feel RBI may have allowed the rupee to cross 84 for tactical reasons, anticipating more volatility in coming days should the Iran-Israel conflict escalate...
The rupee had strengthened to 83.5 barely two weeks ago, buoyed by gains in equity markets. from Indian equities have exerted downward pressure.. has surged from $69 per barrel in late Sept to $78.92 in Oct...
The continued strength of the dollar, driven by dimmed expectations of a 50-basis-point rate cut from the US Federal Reserve in Nov, has also contributed to the rupees weakness. However, with RBI maintaining robust foreign exchange reserves, any significant depreciation is likely to be gradual and controlled, dealers said..
