Rupee closes at new low of 83.4/$

The rupee closed at a new low of 83.4 against the dollar in Mumbai. Dealers stated that this was only a mathematical development and the currency has been steady recently. The government aims to promote the rupee globally by keeping it stable. The decline in crude oil prices to $73 levels and lower inflation numbers contribute to supporting the currency. Foreign institutional investors were net buyers. The short-term outlook for the rupee is positive, but dealers are cautious about any surprises in the US Federal Reserve’s post-meeting statement.