Rupee nears record low despite RBI hike, governor says markets can be irrational

The rupee moved close to a record low despite an RBI hike, underscoring the pressure facing the currency market. The RBI governor said markets can be irrational.

Currency weakness persists

The rupee’s approach toward a record low came despite the central bank’s latest hike. The development shows that the RBI action did not immediately prevent the currency from weakening toward that level.

Governor points to market behaviour

The governor’s comments placed market behaviour at the centre of the discussion, with a warning that prices can at times move irrationally. The statement came as the rupee remained close to its record-low mark.

What remains clear

The available information does not provide further details on the size or type of the RBI hike, the reasons for the rupee’s move, or the central bank’s next steps. For now, the key development is the currency’s proximity to a record low despite the RBI action.