GUWAHATI: The Indian rupee fell 5 paise to a new lifetime low of 84.37 against the U.S. dollar on Friday, November 8. This drop in value marked its third consecutive session of decline.
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At the interbank foreign exchange, the rupee opened at 84.32, touched a high of 84.31, and a low of 84.38 before settling at 84.37, marking a provisional 5 paise loss from the previous close of 84.32. Over the past three sessions, the currency has lost 28 paise against the U.S. dollar.
Forex analysts attribute the rupee’s slump to persistent foreign fund outflows, rising crude oil prices, and a muted domestic equity market. According to exchange data, Foreign Institutional Investors (FIIs) had sold shares worth ₹4,888.77 crore on Thursday, November 7.
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, also commented that a recent rally in crude prices further pressured the rupee.
Along with the aforementioned issues, the U.S. Federal Reserve’s recent decision to cut interest rates by 25 basis points to a target range of 4.5% - 4.75% has also stirred market volatility.
Although the dollar index, which measures the dollar against six major currencies, softened slightly to 104.50, expectations of a strong dollar remain, adding to the rupee's downward bias.
