Indian Rupee Hits Historic Low of 84.37 Against US Dollar Amid Global Economic Shifts

Highlights

The Indian rupee fell to a historic low of 84.37 against the US dollar in early trading on Friday.

In early trading on Friday, the Indian rupee fell by 5 paise, reaching a new low of 84.37 against the US dollar.

This drop was mainly due to continuous outflows of foreign funds and weak trends in the domestic equity markets.

The rupee opened at 84.32 against the dollar but quickly fell to 84.37, a 5 paise decline from its previous close.

On Thursday, the rupee had already hit a new all-time low, closing at 84.32.

Forex traders pointed to the recent interest rate cut by the US Federal Reserve as a factor in global market changes. The Fed lowered its benchmark rate by 0.25%, bringing it to a range of 4.5% to 4.75%.

The Fed’s statement was neutral-to-dovish, noting balanced risks with inflation and employment.

Experts believe this, combined with Donald Trump’s tax and trade policies, has added to market volatility.

This is expected to affect the rupee’s movements.

The US dollar index, which tracks the dollar against six major currencies, rose slightly by 0.02%, reaching 104.53. Meanwhile, Brent crude oil prices fell by 0.65%, trading at USD 75.14 per barrel.

In India, the stock markets showed a weak trend.

The Sensex dropped by 14.23 points, or 0.02%, closing at 79,527.56.

The Nifty also fell, dropping by 15.45 points, or 0.06%, to end at 24,183.90.

Foreign institutional investors (FIIs) were net sellers in India’s markets on Thursday, selling shares worth Rs 4,888.77 crore.

This selling pressure, along with global factors, has contributed to the rupee’s decline.

Experts will closely watch the Reserve Bank of India’s (RBI) actions and global economic changes.

These will likely influence the future of the rupee in a volatile market environment.