The rupee slide continued, and the currency closed at a new low of 55.0350 to the dollar on Monday.
Opening weak at 54.48 as against Friday's close of 54.42, the rupee edged lower on sustained demand for dollars to meet the country's defence related payments, and from oil companies and corporates repaying their foreign currency debt, said a foreign exchange dealer.
“The rupee is depreciating as demand for dollars is outstripping supply. Surprisingly, the Reserve Bank of India did not intervene (sell dollars) despite the rupee heading towards the crucial 55 mark.
“Exporters were waiting on the sidelines in anticipation that the rupee would weaken further. 55 is a good level for exporters to encash,” said a forex dealer with a public sector bank.
Dealers say the RBI has been doing all it can to stem the rupee's slide. Now, it is for the Government to announce measures to attract foreign direct investment or launch dollar-denominated bonds to draw dollars into the country.
Dealers say the rupee could trade in the 55.10-55.20 band per dollar on Tuesday.
Meanwhile, to curb speculation in the interbank forex market, the RBI said the current net open position limit of banks involving rupee as one of the currencies will not include the positions undertaken in the Currency Futures/Options segment in the exchanges.