Rupee falls 6 paise to fresh all-time low of 84.37 against US dollar

Rupee hits record low against dollar due to weak equities, FII outflows, but dollar index correction offers some relief.

The rupee declined 6 paise to close at a fresh lifetime low of 84.37 (provisional) against the U.S. dollar on Thursday (November 7, 2024), as weak domestic equities and sustained foreign fund outflows dented market sentiment.

Forex traders said investors were also cautious ahead of the U.S. Fed meeting outcome. Moreover, overnight gains in crude oil prices also weighed on the local unit.

“However, a correction in the dollar index against major currencies helped the rupee and restrained the slide,” they added.

At the interbank foreign exchange, the rupee opened at 84.26 against the U.S. dollar. During the session, the local currency touched a high of 84.26 and a low of 84.38. It finally settled at 84.37 (provisional), a loss of 6 paise against its previous close.

On Wednesday (November 6, 2024), the rupee depreciated 22 paise to close at an all-time low of 84.31 against the U.S. dollar.

The rupee touched fresh record lows again on the back of weak domestic equities and sustained FII outflows. Overnight gains in crude oil prices also weighed on the rupee. However, the softening of the U.S. Dollar index from Wednesday's (November 6, 2024) highs cushioned the downside, forex traders said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.22% lower at 104.86.