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(Updates to add probably the RBI dollar sale, background)
By Suvashree Choudhury
MUMBAI, Sept. 6 (Reuters) – The Indian rupee broke the $ 72 mark for the first time on Thursday, extending losses due to the defeat of emerging markets.
The rupee fell to a record low of 72.11 against the dollar at one point, but reduced the day's losses after a slight sell-off likely by the Reserve Bank of India, dealers said.
At 0829 GMT, the rupee traded at 71.9350 against the dollar against its previous close of 71.7750.
"This is not an intervention, it's just a moderate sell (dollars) to mitigate volatility and no longer protect any level," said a leading Forex analyst in a public bank.
The rupiah has fallen nearly 2% this month and more than 12% this year, making it the weakest currency in Asia.
The traders estimate that the RBI sold about $ 1 billion Thursday, which they say is not much given the pace of the fall of the rupee.
The RBI intervenes anonymously on the foreign exchange market through the banks and publishes its foreign exchange reserves figures with a lag of one week. As a rule, traders can only estimate the intervention number from weekly data.
While the sharp fall of the rupee and the RBI's unobtrusive stance on the foreign exchange market surprised several traders, government officials were not very concerned about the rapid depreciation of the currency.
Finance Minister Arun Jaitley said on Wednesday that no panic was needed for the fall of the rupee, while Secretary of Commerce Anup Wadhawan estimated global exports were up 14.32 percent. $ 25.77. billions of years ago.
"It's pretty puzzling for the markets what the government and the RBI want on the rupee, and why the government is sending signals that they are not worried about the rupee," said a foreign exchange manager. A public bank.
The next technical level of Fibonacci for the rupee will be 72.50 to 72.80 for the dollar, said the forex analyst. (Report by Suvashree Dey Choudhury, edited by Richard Borsuk)
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