The Crossbill News Desk
The Indian rupee weakened by 4 paise on Monday (January 6), hitting a new record low of 85.83 (provisional) against the US dollar.
The decline came amidst a sharp sell-off in domestic equity markets and continued foreign capital outflows, news agency PTI reported.
Forex analysts attributed the rupee's slump to rising US bond yields and heightened demand for the dollar as a safe-haven asset due to concerns surrounding the HMPV virus outbreak.
At the interbank foreign exchange market, the rupee opened at 85.77 and briefly touched an all-time intraday low of 85.84 before closing at 85.83, down 4 paise from its previous close.
On Friday, the rupee had also depreciated by 4 paise to settle at 85.79 against the dollar.
In contrast, the dollar index, which measures the greenback's strength against a basket of six major currencies, was down 0.33% at 108.44. Meanwhile, Brent crude oil prices declined by 0.31%, trading at $76.27 per barrel in futures.
The domestic equity markets suffered significant losses, with the 30-share BSE Sensex plunging 1,258.12 points (1.59%) to close at 77,964.99, while the NSE Nifty dropped 388.70 points (1.62%) to settle at 23,616.05.
Foreign institutional investors (FIIs) continued their sell-off, offloading a net Rs 4,227.25 crore in the capital markets on Friday, as per exchange data.
Adding to the concerns, India's foreign exchange reserves fell by $4.112 billion to $640.279 billion for the week ending December 27, according to data released by the Reserve Bank of India.
The decline came amidst a sharp sell-off in domestic equity markets and continued foreign capital outflows, news agency PTI reported.
Forex analysts attributed the rupee's slump to rising US bond yields and heightened demand for the dollar as a safe-haven asset due to concerns surrounding the HMPV virus outbreak.
At the interbank foreign exchange market, the rupee opened at 85.77 and briefly touched an all-time intraday low of 85.84 before closing at 85.83, down 4 paise from its previous close.
On Friday, the rupee had also depreciated by 4 paise to settle at 85.79 against the dollar.
In contrast, the dollar index, which measures the greenback's strength against a basket of six major currencies, was down 0.33% at 108.44. Meanwhile, Brent crude oil prices declined by 0.31%, trading at $76.27 per barrel in futures.
The domestic equity markets suffered significant losses, with the 30-share BSE Sensex plunging 1,258.12 points (1.59%) to close at 77,964.99, while the NSE Nifty dropped 388.70 points (1.62%) to settle at 23,616.05.
Foreign institutional investors (FIIs) continued their sell-off, offloading a net Rs 4,227.25 crore in the capital markets on Friday, as per exchange data.
Adding to the concerns, India's foreign exchange reserves fell by $4.112 billion to $640.279 billion for the week ending December 27, according to data released by the Reserve Bank of India.
Comments (0)
Leave a Comment