Following the US dollar’s strength versus key international rivals and persistent outflows of foreign money, the rupee fell 9 paise to settle at an all-time low of 83.33 (provisional) against the US dollar on Wednesday.
Furthermore, rising crude oil prices and a downward trend in US stocks combined with geopolitical unpredictability in the Middle East affected investor mood, according to currency dealers. The opening value of the rupee versus the dollar at the interbank foreign exchange was 83.26. Its value relative to the US dollar saw intraday lows of 83.35 and highs of 83.26 throughout the trading day.
Finally, the local unit dropped 9 paise from its previous close to reach its lifetime low of 83.33 (provisional). The rupee ended Tuesday’s trading day at 83.24 against the US dollar.
The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was up 0.20 percent at 106.87 in the meantime. Benchmark Brent crude futures for the world market increased 1.34 percent to USD 86.16 a barrel.
Forex traders claimed that the rupee was further under pressure due to FII outflows and dismal macroeconomic data from India.
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) fell from 57.5 in September to 55.5 in October, the lowest pace of expansion since February, based on domestic macroeconomic data.
