January 6, 2025
New Delhi, India
Rupee Record Low
The Indian rupee reached a fresh all-time low of 85.82 against the US dollar during early trade on Monday, slipping three paise from its previous close of 85.79 on Friday. This decline comes amid persistent foreign capital outflows and a strong US dollar index, which kept investors cautious.
Market Factors
- Support from Crude Oil Prices: Falling crude oil prices overseas provided some relief to the rupee. Brent crude futures traded 0.18% lower at $76.37 per barrel.
- Impact of US Dollar Index: The dollar index, which measures the greenback’s strength against a basket of six currencies, was marginally down by 0.05% at 108.74.
Forex Market Highlights
- At the interbank foreign exchange, the rupee opened at 85.77 before slipping further to 85.82.
- The currency had previously touched an intra-day low of 85.80 on December 27, 2024.
Domestic Market and Foreign Flows
- Equity Markets: The BSE Sensex rose by 192.52 points (0.24%) to 79,415.63, while Nifty gained 61.10 points (0.25%) to 24,065.85.
- Foreign Institutional Investors (FIIs): FIIs offloaded ₹4,227.25 crore in the domestic markets on Friday, signaling continued outflows.
- Forex Reserves: India’s forex reserves declined by $4.112 billion to $640.279 billion for the week ending December 27, according to the Reserve Bank of India.
Investor Sentiment
The sustained strength of the US treasury yields and dollar index continues to weigh heavily on investor confidence. While crude oil prices offer marginal support, concerns surrounding foreign outflows and elevated levels of the American currency keep the rupee under pressure.
Stay tuned for further updates on market trends and economic indicators!
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