The rupee extended its slide for the second straight session and depreciated 9 paise to settle at a fresh all-time low of 85.20 (provisional) against the U.S. dollar on Tuesday (December 24, 2024). The rupee was dragged by a strong greenback against major crosses overseas and subdued domestic equities.
According to analysts, increased demand for the dollar due to month-end payment obligations and the fear of an aggressive import tariff by the Donald Trump administration in the U.S. strengthened the greenback.
โBesides, surging crude oil prices pushed the rupee down further,โ they added.
At the interbank foreign exchange, the rupee opened at 85.10 and touched the lowest ever level of 85.21 against the greenback during intra-day. The unit finally ended the session at a fresh all-time low of 85.20 (provisional) against the dollar, registering a loss of 9 paise from its previous close.
On Monday (December 23, 2024), the rupee settled 7 paise lower at 85.11 against the U.S. dollar.
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee fell to a fresh all-time low on weak domestic markets and a strong U.S. dollar due to increased demand from importers and surging crude oil prices.
He said a hawkish tone of the U.S. Federal Reserve and an improved U.S. economy may further support the dollar.
“FII outflows may also weigh on the rupee. However, any intervention by the RBI may support the rupee at lower levels. USD-INR spot price is expected to trade in a range of โน85 to โน85.40,” Mr. Choudhary said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.11 % at 107.93, amid soaring U.S. Treasury yields and the fear of delayed interest rate cuts by the U.S. Federal Reserve.
Brent crude, the global oil benchmark, rose 0.69% to $73.13 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex closed lower by 67.30 points, or 0.09%, at 78,472.87 points, while Nifty fell 25.80 points, or 0.11% to close at 23,727.65 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday (December 23, 2024), as they offloaded shares worth โน168.71 crore, according to exchange data.
Published – December 24, 2024 04:33 pm IST