Re nosedives 31 ps to all-time low of 84.03/$
Local unit fell due to sharp downturn in Indian equity markets and significant FII outflows; USD-INR spot price is likely to trade in a range of Rs 83.60 to Rs 84.20
Re nosedives 31 ps to all-time low of 84.03/$
Mumbai: The rupee slumped 31paise to settle at an all-time low of 84.03 against the US dollar on Monday, following a sell-off in broader global markets amid rising geopolitical tensions in the Middle East and worries over recession in the US. Forex traders said the downfall in the domestic unit came on the heels of a sharp downturn in the Indian equity markets and significant foreign fund outflows. At the interbank foreign exchange market, the local unit opened at 83.78 and touched an intra-day high of 83.76 and a low of 84.03 against the dollar during the session. It finally settled at its fresh record low level of 84.03 against the American currency, down 31paise against its previous close.
On Friday, the rupee settled 1paisa higher at 83.72 against the US dollar in a range-bound trade. “We expect the rupee to trade with a negative bias on risk aversion in the global markets. Escalation of geopolitical tensions in the Middle East and outflows by foreign investors may further pressurise the domestic unit,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas. However, a weak US dollar and declining crude oil prices may support the rupee at lower levels.
