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The rupee depreciated by 4 paise to settle at an all-time low of 84.87 (provisional) against the U.S. dollar on Thursday (December 12, 2024), 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 4 paise down at a fresh all-time low closing level of 84.87 (provisional) against the dollar.
On Wednesday (December 11, 2024), the rupee settled with a gain of 2 paise at 84.83 against the U.S. dollar.
Rupee’s previous record low closing level was recorded on December 9, when it settled 20 paise 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 U.S. dollar and weak domestic markets.
He further said the U.S. 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 U.S. USD-INR spot price is expected to trade in a range of 84.65 to 85.10,” he said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally lower by 0.16% at 106.22.
Brent crude, the global oil benchmark, rose 0.35% to $73.78 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex closed lower by 236.18 points or 0.29% at 81,289.96 points. The Nifty was down 93.10 points, or 0.38%, to 24,548.70 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday (December 11, 2024), as they offloaded shares worth ₹1,012.24 crore, according to exchange data.
Published – December 12, 2024 05:56 pm IST