By Staff Reporter
The rupee depreciated 8 paise to settle at an all-time low of 84.50 (provisional) against the U.S. dollar on Thursday (November 21, 2024), dragged down by massive sell-off in domestic equity markets and surging crude oil prices amid a volatile geopolitical situation.
According to forex traders, the American currency strengthened due to safe-haven appeal amid escalating tension between Russia and Ukraine, while the continuous outflow of foreign funds also put pressure on the domestic unit.
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At the interbank foreign exchange, the rupee opened at 84.41 and touched the lowest-ever level of 84.51 against the greenback during intra-day. The unit ended the session at 84.50 (provisional) against the dollar, surpassing its previous all-time low closing level of 84.46 recorded on November 14.
On Tuesday (November 19, 2024), the rupee settled flat at 84.42 against the U.S. dollar.
The foreign exchange market was closed on Wednesday (November 20, 2024) due to assembly elections in Maharashtra.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said the rupee weakened as pressure mounted due to the dollar scaling higher above 106.65 amidst renewed global uncertainties with geopolitical tensions between Russia and Ukraine adding to global risk aversion.
At the same time, the sell-off in domestic equity markets was fuelled after the Adani Group faced bribery and fraud charges in the US. “This has further fuelled FII outflows, continuing the trend of capital flight from Indian markets,” Mr. Trivedi said.
“The rupee’s trading range is expected between 84.35 and 84.65, with continued weakness likely in the near term,” Mr. Trivedi added.
Source: TH
