Rupee Hits All-Time Low Of 83.36 Against US Dollar Amid Global Market Fluctuations

In a morning session marked by volatility, the Indian rupee depreciated 2 paise, hitting an all-time low of 83.36 against the US dollar on Friday. The downward slide was influenced by a negative trend in domestic equities and global uncertainties.

Opening at 83.33 against the dollar at the interbank foreign exchange, the rupee witnessed a significant dip to 83.36 in initial deals, marking a 2-paise fall from its previous close of 83.34 on Thursday.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP noted that the market grappled with US dollar buyers on one side and the Reserve Bank of India (RBI) on the other. With the Thanksgiving holiday in the US affecting cash inflows, trading is expected to be range-bound with lower volumes.

As per Bhansali's analysis, the RBI is allowing the rupee's depreciation in a slow and steady manner. He predicts a further decline to 83.50 in the coming days.

The global economic landscape also played a role in the rupee's depreciation, with Asian shares dragged lower by China. The lack of guidance from Wall Street, which was closed for the Thanksgiving holiday, added to the uncertainty in the market.

Furthermore, the Dollar Index, measuring the greenback's strength against a basket of six currencies, was down by 0.12% at 103.79.

Importers' ongoing purchases for settling Russian oil dues, combined with outflows from other importers and foreign portfolio investors (FPIs), contributed to the pressure on the rupee.

In the energy sector, global oil benchmark Brent crude futures saw a slight decline of 0.06%, settling at $81.37 per barrel.

On the domestic front, the BSE Sensex was trading nearly 100 points or 0.15% lower at 65,921.98, while the NSE Nifty fell 25 points or 0.13% to 19,776.25.

Foreign institutional investors (FIIs) were net buyers in the capital market on Thursday, acquiring shares worth Rs 255.53 crore, according to exchange data.

As financial markets navigate through these fluctuations, stakeholders are closely watching the developments, with analysts keeping a keen eye on the rupee's movement and its implications for the broader economic landscape.