RBI is going to let the rupee slip along with yuan. Here’s why

The Reserve Bank of India is not going to defend a falling rupee, saying it will result in rupee’s competitiveness.

"The rupee may see a new (record) low, based on deteriorating external factors like China. A moderate or stable market driven rupee dollar range adds confidence to global investors while limiting space for speculative bets,” KN Dey, executive director at Mecklai Financial, told ET.

The rupee weakened 10 paisa to close at 66.93 per dollar.

"The RBI would not like a situation where the rupee continues to strengthen materially in real terms as that would result in disruptive adjustments required later," Brijen Puri, managing director, head of markets, JP Morgan (India), told the financial daily.

Experts say that export struggling India will make rupee weaker by additional 10%.