RUPEE PLUMMETS TO RECORD LOW, CENTRAL BANK SAYS NEITHER BUY nor SELL

Mumbai: India's currency, the rupee, plummeted to a record low against the US dollar hit 85.1625 in early trade before stabilizing at 85.16 as of 9:20 am IST.

On higher US bond yields and increased demand from local oil companies, the Indian central bank was speculated to be selling dollars to limit the rupee's losses on Tuesday. State-run banks were spotted offering dollars, primarily operated by the Reserve Bank of India (RBI).

According to traders at private banks, dollar offers from state-run banks hovered around 85.16-85.17 levels but these transactions appear "not very heavy". The rupee is now expected to slide towards 85.20 during the day, with the RBI allegedly monitoring any sharp declines.

The fall marks a significant drop in the value of the Indian currency since the start of the year and comes at a time when global economic uncertainty increases the volatility of financial markets worldwide.