Re Falls 4ps To Fresh All-Time Low Of 83.87/$

Mumbai: The rupee depreciated by 4paise to settle at an all-time low of 84.87 against the US dollar on Thursday, dragged down by negative domestic equity markets, outflow of foreign funds and rise in crude oil prices.

Forex traders said investors were awaiting cues from domestic inflation data to be released later in the day even as an elevated dollar index weighed on the Indian currency. At the interbank foreign exchange, the rupee opened at 84.85 and touched the lowest-ever level of 84.88 against the greenback during intra-day trade.

The unit finally ended the session 4paise down at a fresh all-time low closing level of 84.87 against the dollar. On Wednesday, the rupee settled with a gain of 2paise at 84.83 against the US dollar. Rupee’s previous record low closing level was recorded on December 9, when it settled 20paise lower at 84.86 against the dollar.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee touched a fresh all-time low on strong US dollar and weak domestic markets. He further said the US dollar gained on rising inflation in the US. However, it was in line with estimates.

“Surge in global crude oil prices may further pressurise the rupee. However, any intervention by the RBI may support the rupee at lower levels. Traders may take cues from PPI (producer price index) and weekly unemployment claims data from the US.