Mumbai
The Indian rupee fell by 2 paise to hit a new all-time low of 84.39 against the US dollar on Monday, marking its fourth consecutive session of decline. This drop is attributed to persistent foreign fund outflows and a muted trend in domestic equities.
Forex traders noted that the rupee is likely to remain under pressure unless the dollar index softens or foreign fund outflows slow. The rupee opened at 84.38 and traded between 84.37 and 84.39 during the session. In the past four sessions, the rupee has lost 30 paise against the dollar.
The decline comes amid a stronger US dollar index, fueled by optimism surrounding former President Donald Trump’s economic growth plans. Foreign investors pulled out USD 11 billion from Indian markets in October and another USD 1.5 billion in November.
The Reserve Bank of India’s intervention is expected to provide some support to the rupee. Meanwhile, traders are awaiting inflation data from India and the US later this week. Despite a slight rise in the domestic equity market, foreign institutional investors continued to sell off shares, further impacting the rupee’s performance.
India’s forex reserves also saw a decline, falling by USD 2.675 billion to USD 682.13 billion as of November 1.
