The Reserve Bank of India is focusing on managing the volatility rather than the level, said Ray Farris of Credit Suisse while talking about the rupee fall.
"I wouldn’t expect RBI to try to hold any particular level but they will intervene persistently to try to keep volatility under control and manage the pace at which the currency moves,” said Farris.
“Market in general has been weak at a global level. With the trade balance and current account balance in deficit, if portfolio investment flows turn negative, the currency has to weaken,” he added.
On Thursday, rupee opened at record low 70.19 against the US dollar and further slipped to 70.26. It hit 70 to the dollar for the first time on Tuesday, falling 15 paise intraday due to sharp depreciation in Turkish lira. The rupee has fallen more than 9 percent year-to-date and around 2 percent in August.>>Follow our full coverage on Indian rupee here