Rupee falls 1 paisa to all-time low of 84.40 against U.S. dollar in early trade

USDINR pair volatile near all-time low of 84.40 due to global factors, RBI intervention, and weakening Dollar Index.

The rupee slipped 1 paisa to an all-time low of 84.40 against the US dollar in early trade on Wednesday (November 13, 2024), as persistent foreign fund outflows and a muted trend in domestic equities weighed on the local unit.

Forex traders said the USDINR pair has shown significant volatility in recent sessions, with the rupee inching closer to its all-time low of 84.40. This downward pressure is largely driven by global factors, particularly the Dollar Index’s strengthening.

At the interbank foreign exchange, the rupee opened at 84.40 against the greenback, registering a fall of 1 paisa over its previous close.

On Tuesday, the rupee fell 1 paisa to a new lifetime low of 84.39 against the U.S. dollar.

"It appears that the rupee has established support around the current levels, with depreciation limited near 84.50," CR Forex Advisors MD Amit Pabari said.

Pabari further added that the RBI stands tall as the depreciation in the rupee seems to be limited as the Reserve Bank of India (RBI) continues to sell the dollars to protect the sharp depreciation.

"For the 5th consecutive week, India’s forex reserves declined, possibly due to RBI selling the dollars. Currently, the forex reserves of India stand at USD 682 billion down from the recent all-time high of USD 704 billion," he said.