The rupee hit a new all-time low of 76.55 in intra-day trade on Thursday even as equity markets rebounded. Dealers said the thin trade had added to the volatility as sentiment was largely negative.
“In a risk-averse situation, funds will gravitate to US treasuries and the dollar will continue to gain as long as there is uncertainty,” said a private bank executive. The local unit opened at 78.11, but slipped sharply in thin trade. However, it closed at 76.29, up 5 paise over its previous close of 76.34.
Bankers said that while there have been some inflows of dollars through the investment route, it is uncertain whether these can be sustained given that the Covid-19 crisis is not seen to have peaked. The RBI has curbed trading hours as banks are finding it difficult to staff dealing rooms and many are operating remotely.