Rupee falls 4 paise to hit all-time low of 84.11 against US dollar
Mumbai, Nov 4: The rupee on Monday fell 4 paise to a record low of 84.11 against the US dollar, tracking a weak trend in domestic equities and relentless foreign capital outflows.
Forex traders said the Indian rupee touched new all-time lows weighed down by negative domestic markets which fell nearly 1.18 per cent. A recovery in crude oil prices and FII outflows also dented investor sentiments.
However, the softening of the US dollar prevented a sharp fall.
At the interbank foreign exchange, the rupee opened at 84.07 against the US dollar. During the session, the local currency oscillated between a high of 84.06 and a low of 84.12. It finally settled at its all-time low of 84.11, a loss of 4 paise from its previous close.
On Thursday, the rupee edged up 1 paisa to 84.07 against the US dollar.
The forex market remained closed on Friday on account of Diwali.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.52 per cent to 103.73 points.
US dollar declined on disappointing non-farm payrolls report and ISM manufacturing PMI data from the US on Friday. The US added only 12,000 jobs in October 2024 versus forecast of 106,000 jobs while ISM manufacturing PMI fell to 46.5 in October, falling short of expectations of 47.6, Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.
Brent crude, the international benchmark, surged 2.63 per cent to USD 75.02 per barrel in futures trade.
"We expect the rupee to trade with a negative bias on weak domestic markets and sustained FII outflows. However, softening of US dollar amid disappointing jobs markets may support the rupee at lower levels. Traders may take cues from factory orders data from the US today and FOMC meeting outcome later this week," Choudhary said.
"USDINR spot price is expected to trade in a range of 83.95-84.30," Choudhary added.
In the domestic equity market, the 30-share BSE Sensex was down 941.88 points, or 1.18 per cent, to close at 78,782.24, while Nifty declined 309 points, or 1.27 per cent, to settle at 23,995.35.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth Rs 4,329.79 crore, according to exchange data.
"Foreign portfolio investors (FPIs) resumed selling after the Diwali Muharat trading. Rupee accordingly reacted and fell to 84.11 its lowest to date. RBI which was protecting 84.09 has now taken the levels slightly higher," said Anil Kumar Bhansali Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
Market participants will await cues from the US election results and FOMC on November 6 and November 7, respectively, he added.
Meanwhile, India's forex reserves dropped USD 3.463 billion to USD 684.805 billion in the week ended October 25, the RBI said on Friday.
The overall reserves had dropped USD 2.163 billion to USD 688.267 billion in the previous reporting week. In end-September, the reserves had hit an all-time high of USD 704.885 billion.
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Bomb-like object found outside police station in Punjab's Ajnala
Amritsar, Nov 24: A bomb-like object was found outside the Ajnala police station near Amritsar on Sunday, police said.
Police sealed the area and pressed a bomb disposal squad into service immediately after getting the information, which sent the object for further investigation, officials said.
Deputy Superintendent of Police, Gurwinder Singh, said it would be too early to say anything on the matter, adding that an investigation was underway.
RDX around 800 grams placed near #Ajnala police station same police station, which was attacked by #AmritpalSingh February last year.#Punjab #Amritsar pic.twitter.com/XVqvHDIlbz
— Porus ਪੋਰਸ (@porusofpanjab) November 24, 2024
