Rupee may drop to near 84/USD and there is likely RBI intervention

The Indian rupee is poised to weaken, with forecasts indicating it could reach an all-time low against the U.S. dollar. The non-deliverable forwards (NDF) market suggests that the rupee (USDINR) will open at 83.97-83.99 to the dollar, slipping past Monday’s close and lifetime low of 83.8450.

Overnight, the 1-month dollar/rupee NDF (INR1MNDFOR=) climbed to 84.25, driven by concerns over the unwinding of the Japanese yen carry trade. However, it retraced some of its gains and was last seen at 83.06/83.08.

Read more to find out how will Indian rupee trend.