Re Dips 1ps To Fresh All-Time Low Of 84.39/$

Mumbai: The rupee fell 1paisa to a new lifetime low of 84.39 against the US dollar on Tuesday as persistent foreign fund outflows and a strengthening greenback against major crosses overseas dented investor sentiments. Forex traders said the rupee is likely to trade between 83.80 and 84.50 in the medium term, with the Reserve Bank of India likely limiting any significant downside, aided by its robust foreign exchange reserves. At the interbank foreign exchange, the rupee opened at 84.39 against the US dollar. During the session, the local currency touched a high of 84.39 and a low of 84.41. It finally settled at 84.40, a decline of just 1paisa against the US currency, registering a loss for the fifth straight session. On Monday, the rupee dropped 1paisa to hit a new lifetime low of 84.38 against the US dollar. In the last five sessions, the local unit has lost 32paise against the greenback. “The rupee traded weaker as foreign funds continued their selling spree in the Indian market. However, the rupee received some relief from falling crude and gold prices, as the reduced pace of decline could potentially improve India’s import bill in the coming months,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities. Despite this, the dollar index’s continued strength above 105 is expected to maintain pressure on the rupee, limiting any significant recovery in the near term.