Rupee Falls 9ps To All-Time Low Of 84.8/$

Mumbai: The rupee depreciated by 9paise to close at an all-time low level of 84.89 against the US dollar on Monday, dragged down by a negative trend in domestic equities. Forex traders said the Indian rupee declined on weak domestic markets and rising US bond yields. However, a soft US dollar cushioned the downside. At the interbank foreign exchange, the rupee opened at 84.83 and touched 84.89 against the greenback during intraday trade. The unit finally ended the session 9 paise down at 84.89 against the dollar.

On Friday, the rupee rebounded from its all-time low level and settled with a gain of 8 paise at 84.80 against the US dollar. The unit’s previous all-time low level was recorded on December 12 when it closed at 84.88 against dollar. “We expect the rupee to trade with a negative bias on rising odds of a rate cut by the Federal Open Market Committee (FOMC) and weak tone in the domestic markets.

Elevated crude oil prices may also weigh on the rupee,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan. However, FII inflows and cooling off of inflation may support the rupee at lower levels. On the domestic macroeconomic front, wholesale price-based inflation declined to a 3-month low of 1.89 per cent in November on cheaper food items.