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The Indian rupee has hit a fresh all-time high of 84.11 to a US dollar mainly on account of continued FPI outflows from Indian equities.
The rupee had hit its previous all-time low on Thursday at 84.10 per US dollar.
Continuing its weakening streak, the Indian rupee on Monday hit a fresh all-time high of 84.11 to a US dollar mainly on account of continued FPI outflows from Indian equities.
The domestic currency had hit its previous all-time low on Thursday at 84.10 per US dollar. The Forex market remained closed on Friday on account of Diwali.
“FPIs (foreign portfolio investors) continue to sell Indian equities and buy dollars, while the Reserve Bank of India (RBI) is not so aggressive in selling the greenback as of now,” said Anil Kumar Bhansali, head (treasury) and executive director at Finrex Treasury Advisors LLP.
A higher demand in the dollar makes it expensive against other currencies, thus leaving other currencies weaker.
According to forex traders, the rupee is likely to trade in a narrow range during the day as the strong dollar weighs on the local unit and rising crude oil prices dragged down the local unit.
They said that any intervention by the RBI may support the rupee at lower levels.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.58 per cent lower at 103.70.
Indian equities on Monday are witnessing massive selloff, with the BSE Sensex plunging by as much as 1,109 points or 1.4% to 78,614 and the NSE Nifty declining by 366 points or 1.51% to 23,938.
At the interbank foreign exchange, the rupee opened at 84.07 against the greenback. In the initial trade, it touched 84.06, registering a rise of 1 paisa over its previous close.
The market capitalisation of all listed companies on BSE declined by Rs 8.44 lakh crore to Rs 439.66 lakh crore.
