Re Falls 2ps To New All-Time Low Of 84.39/$

Mumbai: Declining for the fourth straight session, the rupee dropped 2paise to hit a new lifetime low of 84.39 against the US dollar on Monday, weighed down by persistent foreign fund outflows and a muted trend in domestic equities. Forex traders said the rupee is likely to remain under pressure unless there is a softening in the dollar index or a slowdown in foreign fund outflows. At the interbank foreign exchange, the rupee opened at 84.38 against the US dollar. During the session, the local currency touched a high of 84.37 and a low of 84.39. It finally settled at 84.39, registering a loss of 2paise against its previous close.

On Friday, the rupee dropped 5paise to hit the lowest level of 84.37 against the US dollar, registering a decline for the third straight session. In the last four sessions, the local unit has lost 30 paise against the greenback. The USD-INR pair fell to a record low on Monday as the US dollar index strengthened on Donald Trump’s growth agenda optimism. Foreign investors, following an outflow of $11 billion in October, have withdrawn around $1.50 billion from the Indian equities in November.

The Reserve Bank’s intervention may support the domestic currency. Moreover, traders look forward to the India and the US CPI inflation data scheduled to be released this week, Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, adding the domestic currency is expected to trade with a bearish tilt in near future.