Rupee falls 2 paise to all-time low of 84.13 against U.S. dollar in early trade

Forex traders watch U.S. election impact on markets as rupee hits record low against dollar, with RBI intervention expected.

In early trade on Tuesday (November 5, 2024), the rupee fell 2 paise to an all-time low of 84.13 against the U.S. dollar, as persistent foreign fund outflows and a muted trend in domestic equities dented investor sentiments.

Forex traders said all eyes are on the U.S. as it decides its next President. Markets are bracing for potential volatility over the coming days, especially with the Federal Reserve’s monetary policy announcement also scheduled this week.

At the interbank foreign exchange, the rupee opened at 84.13 against the greenback, registering a fall of 2 paise over its previous close.

On Monday (November 4, 2024), the rupee fell 4 paise to settle at a record low level of 84.11 against the U.S. dollar.

The rupee closed at an all-time low on Monday (November 4, 2024) and opened at a new low of 84.13 as U.S. elections rattled stock markets amid persistent foreign fund outflows, said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

“The Reserve Bank of India (RBI) was present to absorb the fall but has been allowing small bouts of depreciation taking the rupee to new lows against the dollar,” Mr. Bhansali added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03% higher at 103.91.