Rupee hits historic low of Rs 84.40 against Dollar amid global pressure
By Ajay Joseph | First Published Nov 13, 2024, 11:33 AM ISTIn interbank trade, the rupee opened at 84.40 against the dollar, marking a 1-paisa drop from Tuesday's closing rate of 84.39, which was previously an all-time low. The USDINR pair has displayed heightened volatility in recent sessions, reflecting the ongoing depreciation pressure.
The Indian rupee on Wednesday (November 13) reached a new low against the US dollar, slipping by 1 paisa to trade at 84.40 in early trade, amidst sustained foreign fund outflows and a decline in domestic equities. According to Forex traders, this dip in the rupee's value largely to global factors, particularly the strengthening of the Dollar Index, which measures the greenback's performance against six major currencies.
In interbank trade, the rupee opened at 84.40 against the dollar, marking a 1-paisa drop from Tuesday's closing rate of 84.39, which was previously an all-time low. The USDINR pair has displayed heightened volatility in recent sessions, reflecting the ongoing depreciation pressure.
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CR Forex Advisors Managing Director Amit Pabari said that the rupee appears to have found support around its current levels, suggesting that the Reserve Bank of India (RBI) is working to limit further depreciation. "The RBI has intervened by selling dollars to shield the rupee from sharp falls," Pabari said. He also mentioned that India's foreign exchange reserves have declined over the past five weeks, likely due to these dollar sales, bringing the reserves down to USD 682 billion from a recent high of USD 704 billion.
Despite the downward trend, global cues showed slight relief for the rupee as the Dollar Index inched down by 0.04 per cent to 105.98, while Brent crude, the international oil benchmark, rose modestly by 0.25 per cent to USD 72.07 per barrel in futures trade.
Domestically, equity markets showed mixed results, with the Sensex dropping by 210.66 points (0.27 per cent) to 78,464.52 and the Nifty falling by 100.45 points (0.42 per cent) to 23,783.00. Foreign Institutional Investors (FIIs) continued to offload shares, with Tuesday’s sell-offs amounting to ₹3,024.31 crore, according to market data.
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Meanwhile, the inflation rate in India has raised concerns, with retail inflation reaching a 14-month high of 6.21 per cent in October, driven primarily by increasing food prices. This figure surpassed the RBI's upper tolerance threshold, after CPI inflation was recorded at 5.49 per cent in September and 4.87 per cent in the same period last year.
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