Higher gold prices and increased demand for yellow metal ahead of the festive and wedding season puts additional strain on the rupee, according to forex traders and currency analysts.

“Historic highs of gold is also putting the rupee under pressure apart from the usual oil buying. There has been increased demand for gold in the last 3-4 days. Around $100 million worth of gold has been imported every day in the last few days in our bank on account of the festive season and upcoming wedding season,” said a chief dealer at a bank . This has also played a role in pushing the rupee to a record low, he added. The rupee hit another fresh intra-day low of 89.80 on September 23. On Friday, the rupee closed at 88.72 against the dollar.

Festive rush: The immediate pressure from gold imports

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