Rupee crashes 27 paise to hit record low of 86.31 against U.S. dollar in early trade

Rupee hits lifetime low against dollar amid global cues, oil surge, and foreign capital outflow, impacting Indian markets.

The rupee's slide show went on for the second straight session on Monday (January 13, 2025) as it crashed 27 paise to hit a new lifetime low of 86.31 against the U.S. dollar, dragged down by a robust American currency amid volatile global cues.

A record surge in crude oil prices, sustained outflow of foreign capital, and a negative trend in domestic equity markets also kept the Indian currency under pressure, forex traders said.

The dollar, they said, strengthened on better-than-expected job growth in the U.S. market, which also fuelled the benchmark treasury yields amid expectations of slower interest rate cut by the Federal Reserve.

At the interbank foreign exchange, the rupee opened at 86.12 and fell to the historic low level of 86.31 against the greenback in initial deals, registering a steep loss of 27 paise from its previous close.

On Friday, the rupee declined 18 paise to settle at 86.04 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading up 0.22 per cent to its over two-year-high level of 109.72. The 10-year US bond yields remained elevated touching its October 2023 level at 4.76 per cent.

Brent crude, the global oil benchmark, surged 1.44% to $80.91 per barrel in futures trade.