The Indian rupee reached a new low against the U.S. dollar, with a record dip to 84.42, surpassing its previous low. The closing figure was slightly lower at 84.4150. The Reserve Bank of India (RBI) was seen intervening, likely to mitigate further depreciation, with state-run banks offering dollars in the market. This comes amid a mixed performance among Asian currencies and a rise in the dollar index to 106.4, influenced by global factors including geopolitical tensions and market reactions post-U.S. election.
Despite a general easing of the dollar, the rupee has struggled to capitalize on this, limited by the RBI's strategy to bolster foreign exchange reserves. The broader Asian currency market showed mixed results, with the offshore Chinese yuan also experiencing a downturn. The Indian stock market saw fluctuations, with key indices initially gaining but eventually losing momentum towards the session's end. Continuous foreign portfolio outflows have pressured the rupee, although RBI's efforts have provided some stability by reducing volatility and managing the pace of depreciation.
Source: Reuters