Rupee hits all-time low after sharpest weekly fall in 7 months
The rupee closed at 83.4250 against the dollar, slightly higher than the record low of 83.43 earlier in the day.
In Short
Indian rupee hits all-time low against US dollar
Shortage of dollar inflow and Chinese yuan’s drop pressured rupee
Closed at 83.4250, marking biggest weekly drop in 7 months
The Indian rupee hit an all-time low against the US dollar on Friday due to a drop in offshore Chinese yuan and aggressive local dollar demand during the end of the session, reported Reuters quoting traders.
The rupee closed at 83.4250 against the dollar, slightly higher than the record low of 83.43 earlier in the day.
For the week, the rupee fell by about 0.7%, its biggest weekly drop in seven months.
Traders mentioned that there wasn’t enough dollar inflow into the market and the Chinese yuan’s drop, along with dollar strength, put pressure on the rupee.
Additionally, there was a shortage of dollars in the market, which led to the rupee losing value.
Although the Reserve Bank of India sold some dollars earlier in the day, it didn’t intervene towards the end.
The dollar index, which measures the dollar’s value against other currencies, rose by 0.4%. Asian currencies, including the Korean won and the offshore Chinese yuan, also declined.
Experts say that the coming days will be crucial for the rupee. If it continues to stay close to its record low, the outlook for the rupee could turn negative.
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