The Indian rupee fell to a record low of 84.0975 against the US dollar on October 11, 2024, due to significant outflows of foreign funds from Indian equities and rising crude oil prices amidst global uncertainties. This marks the first time the rupee has crossed the 84 mark.
According to the Clearing Corporation of India Ltd (CCIL), the rupee had previously closed at 83.98 to the dollar. Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors LLP, noted that foreign portfolio investors (FPIs) have been major sellers in the Indian equity market, leading to increased demand for dollars.
In the past nine days, FPIs have sold shares worth approximately Rs 55,000 crore, translating to about $1 billion per day. Analysts predict that the rupee could further decline to 84.25 in the short term, with importers likely to continue purchasing at lower rates and exporters holding off on exports.
Additionally, geopolitical tensions in the Iran-Israel-Lebanon region are contributing to the strength of crude oil prices, which have risen to $78.92 per barrel from nearly $69 on September 30. Meanwhile, recent stimulus measures in China, including a potential $283 billion fiscal package, are prompting foreign investors to shift their focus towards Chinese equity markets.
The dollar index remains steady at approximately 102.90, while US yields have slightly decreased from their recent highs. European currencies showed slight gains, and Asian currencies remained stable following South Korea's recent rate cut.
Source: news18.com, Date: October 11, 2024