Rupee Crosses 83 Per Dollar For The First Time, All-Time Low

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The rupee reversed gains from earlier in the session on more indications that high inflation will keep major central banks in rate-hike mode.

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The rupee closed at a new record low of 83.02 against the dollar on Wednesday,

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Reversing gains from earlier in the session on more indications that high inflation will keep major central banks in rate-hike mode, hurting the recent risk-assets rally.

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The rupee closed at the lifetime low against the dollar after opening at 82.3062, compared to its previous close of 82.36.

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The domestic currency fell to a new intra-day record low level of 83.02 against the greenback in a volatile trading session on Wednesday.

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With possibly the Reserve Bank of India buying dollars in currency futures yesterday indicating of things to come, it was only time when 82.40 would have been breached.

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So no level seems to be sacrosanct for the rupee, and therefore 83.50 should be the next target once 83.00 is breached," said Anil Kumar Bhansali

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The rupee had attempted to strengthen to the 82-mark at one point on Tuesday before ending the day at 82.36.

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In contrast, two others claimed it was probably because the RBI purchased USD/INR contracts before their expiration on Friday.

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