Rupee hits historic low of 85.97 against USD, marks tenth weekly loss
Mumbai: The rupee plummeted to an unprecedented low of 85.97 against the US dollar on Friday, surpassing its previous record of 85.9325 set just a day earlier, media reports said.
It closed the session at 85.9650, extending its losing streak to ten consecutive weeks, with a 0.2% decline this week amid a robust dollar and sustained capital outflows.
The currency has been under significant pressure as the dollar index remained above 109 on Friday, driven by investor anxiety over U.S. labour market data.
The dollar’s resilience is primarily linked to expectations of slower rate cuts by the US Federal Reserve, according to Reuters.
ING Bank noted that robust jobs data could delay market expectations for rate cuts, further bolstering the dollar.
The release of U.S. non-farm payrolls data later on Friday is expected to offer key insights into the Fed’s future actions, leaving global markets on edge, according to media reports.
Meanwhile, the Reserve Bank of India (RBI) has intervened to limit excessive volatility, with state-owned banks reportedly selling dollars on its behalf.
While these measures have tempered the rupee's depreciation, they have not halted its persistent decline.
Foreign investors have withdrawn over $3 billion from Indian equities and bonds this month, adding to the rupee's woes, the media reports said.
The sell-off has been fuelled by concerns over the policies of the new US President, which have driven up U.S. bond yields and heightened the appeal of dollar-based assets.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
