MUMBAI, Dec 3 Reuters The Indian rupee hit an alltime low on Tuesday weighed down by a broadly stronger dollar and a slump in the offshore Chinese yuan to a oneyear low, while persistently strong dollar bids in the nondeliverable forwards market also exerted pressure.
The rupee touched a low of 84.7575 before closing slightly nearly flat on the day at 84.6850.
The rupee recovered slightly from its record low as dollar demand ebbed towards the close of the session and the yuan also trimmed losses, a trader at a staterun bank said.
Earlier in the session the rupee managed to avoid deeper losses largely on the back of the Reserve Bank of India39;s intervention in the spot and onshore forwards market.
The RBI sold dollars in spot, via staterun banks, and conducted buysell swaps in midtenor forwards to support the rupee on Tuesday, traders said.
Dollarrupee forward premiums slumped on the back of the central bank39;s swaps with the 1year implied yield dropping below 2 for the first time since August.
Concerns about India39;s slowing economic growth rate, foreign portfolio outflows and weakness in regional peers like the Chinese yuan have maintained pressure on the rupee, with the currency hitting record low levels for two consecutive sessions.
India39;s September quarter GDP growth fell to a multiquarter low, which likely means that the RBI could lower policy rates sooner than expected while foreign equity outflows are likely to persist, undermining the rupee.
After…