The brokerage said that a potential correction in valuations, unwinding of the artificial intelligence (AI) trade, and reopening of the Strait of Hormuz for smoother business activity could help reverse the ongoing foreign outflows.
Amid the falling Indian Rupee, the Reserve Bank of India (RBI) came into play with all the available options to stabilise the falling currency against the US Dollar.
Rising crude oil prices and massive foreign investor withdrawals have intensified pressure on the Indian currency market. Growing geopolitical tensions and stronger dollar demand continue to weaken the rupee.
The Indian rupee fell 0.3 per cent to 91.0750, hitting a record low for a fourth consecutive session.
Nageswaran’s comments came at a time when the rupee hit a record low, crossing the 90-mark against the US dollar in opening trade.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06 per cent, up at 92.18.
From a technical perspective, the rupee is holding below its resistance level of Rs 72.50 to a dollar as well as trend resistance.
The value of the country's gold reserves decreased, declining by $580 million to $37.440 billion.
At the interbank forex market, it witnessed an intra-day high of 74.68 during the session and a low of 74.90 against the US dollar.
Forex traders said positive domestic equities, foreign fund inflows and hopes of a COVID-19 vaccine supported the rupee.
