Despite using almost all tools — including rate hikes, measures to attract overseas deposits and tens of billions of dollars of FX intervention — the rupee is closing in on its record low. It sits only about 0.2% from the May trough of 96.97 per dollar, highlighting pressure from a global surge in yields and concerns over high oil prices. RBI intervention has drained FX reserves by $51 billion in the four weeks to Oct. 2, and the first rate increase in nearly four years has not stopped the curre

Despite using almost all tools — including rate hikes, measures to attract overseas deposits and tens of billions of dollars of FX intervention — the rupee is closing in on its record low. It sits only about 0.2% from the May trough of 96.97 per dollar, highlighting pressure from a global surge in yields and concerns over high oil prices. RBI intervention has drained FX reserves by $51 billion in the four weeks to Oct. 2, and the first rate increase in nearly four years has not stopped the currency's slide. Ritesh Bhansali, deputy CEO at Mecklai Financial Services Pvt., said the sharp reserve fall is worrying and that intervention is currently the only support for the rupee.