MUMBAI (July 22): The Indian rupee is poised to drop to a lifetime low against the US dollar at open on Monday amid a decline in most Asian peers, unless, like in the past, the Reserve Bank of India intervenes.

Non-deliverable forwards indicate the rupee will open at 83.68-83.70 to the US dollar, down from 83.6625 in the previous session and past the all-time low of 83.6650 hit in June.

The rupee was expected to open at a new low on Friday, but avoided it on likely RBI intervention in the non-deliverable forward market.

"The RBI will dictate how today's session plays. If they intervene (in NDF) prior to market open and we have a soft opening, then expect a narrow 4-6 paisa range kind of session," a currency trader at a bank said.

"And if we do get to 83.70 at open, it will be a much more interesting day."

In recent days, the rupee has been persistently pressed due to dollar demand from public sector banks, which traders have said is likely related to oil and defence payments.

Biden quits US presidential race

Asian currencies were mostly weaker, with the offshore Chinese yuan dipping past 7.2900 to the dollar after the country cut benchmark lending rates at a monthly fixing on Monday.

Asian currencies largely shrugged off US President Joe Biden's decision to drop out of the presidential race. The odds of a win for Republican nominee are off the highs hit following the assassination attempt.

The question many are asking at the beginning of the trading week whether there will be any impact on many of the so-called ‘Trump Trades’ that have already been expressed, Chris Weston, head research at broker Pepperstone, said in a note.

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