Rupee Rupee slips to all-time low of 84.38 against US Dollar as Asia FX declines
Mumbai/IBNS: The Indian rupee hit a record low on Monday (Nov. 11), pressured by concerns over Donald Trump's US presidentiaL election victory that weighed on Asian currencies and ongoing outflows from Indian stocks impacting the local currency.
Traders noted that the Reserve Bank of India (RBI) likely intervened to help limit further losses for the rupee.
In early trading, the rupee fell to 84.3875, just below its prior record low of 84.38 reached on Friday. By 9:40 am IST, it was trading at 84.37.
Most Asian currencies declined between 0.1 percent and 0.4 percent, while the US dollar index remained steady around 105, close to a four-month high reached after Trump’s win.
Despite consistent downward pressure last week, RBI interventions helped prevent a steeper fall, according to traders.
On Monday, state-owned banks were seen selling dollars, likely on the RBI’s behalf, as four traders reported.
The RBI’s efforts have contributed to a decline in India’s foreign exchange reserves, now at a two-month low of $682.13 billion as of Nov. 1, marking a fifth consecutive weekly drop.
Foreign investors have withdrawn approximately $2.5 billion from Indian equities in November so far, adding to October’s outflows of $11 billion.
Indian benchmark indices, the BSE Sensex and Nifty 50, were slightly down on Monday after registering their fifth weekly decline in six weeks.
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