Rupee Declines to Record Low of 85.16 Against the US Dollar

Mumbai: The Indian rupee has continued its downward trend, falling 5 paise to reach a new all-time low of 85.16 against the US dollar in early trading on Tuesday. This decline can be linked to the strengthening of the American dollar and a consistent outflow of foreign capital.

Forex traders noted that there is increased demand for the dollar, combined with rising crude oil prices fueled by a volatile geopolitical landscape, which has exerted additional pressure on the rupee. Despite a positive performance in the domestic equity market, these external factors have contributed to the rupee's decline.

The rupee started trading on the interbank foreign exchange at 85.10 and quickly slipped to 85.16 against the greenback, marking a 5 paise decrease from its previous closing rate.

On Monday, the rupee had already recorded a loss, settling 7 paise lower at 85.11 versus the dollar. In comparison, the dollar index, which measures the dollar's strength against a basket of six currencies, rose by 0.10 percent to 107.92. This increase was driven by soaring U.S. Treasury yields and concerns regarding delays in interest rate cuts by the U.S. Federal Reserve.

Additionally, Brent crude oil, which serves as a global benchmark, saw a price increase of 0.30 percent, trading at USD 72.85 per barrel in futures activity.

Meanwhile, the domestic equity market saw minor gains, with the 30-share benchmark index Sensex rising slightly by 15.97 points, or 0.02 percent, to reach 78,556.14 points. The Nifty index also saw an increase, up 13.70 points, or 0.06 percent, at 23,767.15 points.

In terms of capital flows, Foreign Institutional Investors (FIIs) were net sellers on Monday, offloading shares worth Rs 168.71 crore, as reported by exchange data.

Rupee, Dollar, Market