Perhaps continuing its downward trajectory, the indian rupee on monday declined by 9 paise to close at an all-time low of 84.89 (provisional) against the US dollar. Traders said the indian rupee declined on weak domestic markets and rising US bond yields. The traders, however, said that a soft US dollar cushioned the downside. At the interbank foreign exchange, the rupee opened at 84.83 and touched 84.89 against the greenback during intraday trade. The unit finally ended the session 9 paise down at 84.89 (provisional) against the dollar.
Earlier on Friday, the rupee rebounded from its all-time low level and settled with a gain of 8 paise at 84.80 against the US dollar. The unit’s previous all-time low level was recorded on december 12 when it closed at 84.88 against dollar.
Moreover Anuj Choudhary Research Analyst at Mirae Asset Sharekhan said “We expect the rupee to trade with a negative bias on rising odds of a rate cut by the Federal Open Market Committee (FOMC) and weak tone in the domestic markets. Elevated crude oil prices may also weigh on the rupee”. On the domestic equity market front, the 30-share benchmark index Sensex closed lower by 384.55 points or 0.47 per cent at 81,748.57 points. The Nifty was down 100.05 points, or 0.4 per cent, to 24,668.25 points. Foreign Institutional Investors (FIIs) purchased Rs 2,335.32 crore in the capital markets on net basis on Friday, according to exchange data.
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