Rupee slips 1 paisa to close at fresh all-time low of 84.39 against U.S. dollar

Rupee hits lifetime low against dollar, expected to trade between 83.80 and 84.50, influenced by foreign fund outflows.

The rupee fell 1 paisa to a new lifetime low of 84.39 (provisional) against the U.S. dollar on Tuesday (November 12, 2024) as persistent foreign fund outflows and a strengthening greenback against major crosses overseas dented investor sentiments.

Forex traders said the rupee is likely to trade between 83.80 and 84.50 in the medium term, with the Reserve Bank of India likely limiting any significant downside, aided by its robust foreign exchange reserves.

At the interbank foreign exchange, the rupee opened at 84.39 against the U.S. dollar. During the session, the local currency touched a high of 84.39 and a low of 84.41. It finally settled at 84.40 (provisional), a decline of just 1 paisa against the US currency, registering a loss for the fifth straight session.

On Monday, the rupee dropped 1 paisa to hit a new lifetime low of 84.38 against the U.S. dollar.

In the last five sessions, the local unit has lost 32 paise against the greenback.

"The rupee traded weaker as foreign funds continued their selling spree in the Indian market. However, the rupee received some relief from falling crude and gold prices, as the reduced pace of decline could potentially improve India's import bill in the coming months," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Despite this, the dollar index's continued strength above 105 is expected to maintain pressure on the rupee, limiting any significant recovery in the near term.