Re Falls 13 Paise To All-Time Low Of 84.73/$

Mumbai: The rupee depreciated 13 paise to close at an all-time low of 84.73 (provisional) against the US dollar on Monday, on disappointing macroeconomic data and broad strength of the American currency in the overseas markets.

Forex traders said Asian currencies were down after Trump Rhetoric on BRICs currency, as the move may further strengthen the greenback. President-elect Donald Trump on Saturday threatened a 100 per cent tariff on the BRIC bloc of nations if they act to undermine the US dollar. At the interbank foreign exchange, the rupee opened at 84.59 and touched the lowest level of 84.73 against the greenback during intra-day trade. The unit ended the session at an all-time low of 84.73 (provisional) against the dollar, registering a fall of 13 paise over its previous close. On Friday, the rupee plunged 13 paise to settle at a fresh all-time low of 84.60 against the US dollar. Traders said disappointing macroeconomic data and persistent foreign fund outflows also dented investor sentiments. India’s manufacturing sector growth fell to a joint 11-month low of 56.5 in November, restricted by competitive conditions and inflationary pressures amid a softer increase in factory orders, a monthly survey said on Monday.

We expect the rupee to trade with a negative bias on strong dollar and FII outflows. A recovery in crude oil prices may also weigh on the rupee.