Rupee Reaches Record Low Against US Dollar

The Indian rupee has fallen by 5 paise, reaching a new all-time low of 85.16 against the US dollar during early trading on Tuesday. This decline is primarily due to the strengthening of the American dollar and a continued outflow of foreign capital.

Forex traders have noted that increased demand for the dollar, along with rising crude oil prices influenced by a volatile geopolitical landscape, has contributed to the depreciation of the local currency. Even though the domestic equity markets showed some resilience, this did not prevent the rupee from slipping further.

The dollar's robust performance, coupled with soaring US bond yields, has prompted foreign investors to book profits by selling Indian shares. In the interbank forex exchange, the rupee opened at 85.10 but quickly fell to a new low of 85.16, marking a 5 paise loss from its previous close.

On the previous day, the rupee had settled 7 paise lower at 85.11 against the greenback. Meanwhile, the dollar index—an indicator of the dollar's strength against a select basket of currencies—was up by 0.10% at 107.92 as concerns about delayed interest rate cuts by the US Federal Reserve lingered, alongside rising US Treasury yields.

In the global oil market, Brent crude, the benchmark, saw a price increase of 0.30%, trading at USD 72.85 per barrel in futures trading. On the domestic front, the 30-share benchmark index, the Sensex, was seen trading marginally higher, gaining 15.97 points or 0.02% to reach 78,556.14 points. The Nifty index also experienced a slight uptick of 13.70 points, or 0.06%, reaching 23,767.15 points.

Foreign Institutional Investors (FIIs) were net sellers in the Indian capital markets on Monday, having sold shares worth Rs 168.71 crore, according to exchange reports. This trend of selling indicates a cautious approach by foreign investors amidst a fluctuating market.

rupee, dollar, market