Tech snag hits forex trade; Re at new low
RBI seeks explanation; Local unit falls to 83.50/$ intra-day trading before closing at 83.34
RBI has asked the platform to undertake a root cause analysis and ascertain whether it was a system failure or human error that led to the disruption on the platform
Home Currency At Low Ebb
- Re traded in excess volatility
- Previous lowest was 83.32 on Sept 18
- Dollar index trading lower by 0.02% at 105.89
Mumbai: Trading in the forex market was impacted on Friday as one of the platforms suffered an outage. One of the electronic trading platforms suffered an outage around midday during the trading hours due to which players were unable to log into the system, according to sources. Orders dried up as a result of this, they said, adding that this created a heightened uncertainty in the forex market, causing excess volatility in the Indian rupee, which was avoidable.
According to market participants, the Rupee, which has been range-bound around 83.30 to the dollar for many weeks lost some ground as a result of the volatility, depreciating till 83.50 intra-day before closing at 83.34 at the end of the trading session. A source said the Reserve Bank of India has asked the platform to undertake a ‘root cause analysis’ and ‘ascertain whether it was a system failure or human error that led to the disruption on the platform. The RBI has also sought an explanation from the platform to understand the circumstances leading up to the disruption.
