Re nosedives 35ps to hit all-time low of 83.48/$
The local unit had earlier recorded its lowest closing level of 83.40 on Dec 13, the dollar index was trading 0.31% higher at 104.32
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Mumbai: The rupee depreciated 35paise to settle at an all-time low of 83.48 against the American currency on Friday, tracking a surging greenback against major crosses in the overseas markets and weak Asian peers. Forex traders said foreign fund outflows also weighed on the local unit. At the interbank foreign exchange market, the local unit opened weak at 83.28 against the greenback, and finally settled at a record low of 83.48, registering a fall of 35paise from the previous close of 83.13. In intraday trade, the rupee touched a low of 83.52 against the American currency.
The rupee had earlier recorded its lowest closing level of 83.40 on December 13, 2023. According to Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, the US dollar strengthened on weak euro and pound. Euro declined as the Swiss National Bank (SNB) surprised the markets by cutting interest rates by 25 bps to 1.5 per cent, which raised the odds of a rate cut by the European Central Bank (ECB) in June 2024. The pound also fell after the Bank of England kept interest rates unchanged at 5.25 per cent. Two hawkish committee members, who voted for a rate hike in the previous meeting, also voted for a no rate hike. Robust economic data from the US also favoured the US dollar, Choudhary said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.31 per cent higher at 104.32 on Friday.
