The slide in the rupee is seeing no respite and it has hit a fresh low after breaching 71.95. The Indian rupee had appreciated at the opening by 18 paise at 71.40 against the dollar after closing at the previous record low of 71.58 yesterday.
In comparison, the rupee on Monday closed at 71.21 apiece a dollar. The free-fall in the rupee has been now recorded for the fifth straight day against US dollar.
The US dollar is gaining strength from the escalating Sino-US tensions as well as pressure seen on emerging market currencies. Also, the rising crude oil has been another deterrent for the rupee.
Also, as the rupee is expected to touch a new low of between 72-73 by the end of December this year as estimated by experts, there has been seen a lot a speculative buying in the dollar that has further erased any probable strengthening in the domestic currency.
The threshold for RBI intervention to curb any further free fall in rupee has already been reached and it is doing little even when the forex reserves are at around USD.
Rupee's fall is also triggered due to the continuous surge in crude oil price and as the FPI investor class has been asked to comply with the KYC rules maximum by the end of this year i.e. December 31, 2018.
As per the Motilal Oswal report, the rupee is expected to trade in the range of 71.20 and 71.80 in today's trade.