The Indian rupee falls again to its lifetime low on Thursday in the wake of the dollar and U.S. rates extending their post-U.S. election rally. The rupee falls 1 paisa to an all-time low of 84.40 against the US dollar in early trade.
The 1-month non-deliverable forward indicated the rupee will open at 84.42-84.44 against the U.S. dollar, up from 84.3775 in the previous session and exceeding the all-time low of 84.4125 reached on Tuesday.
The dollar index reached 106.64 in Asia, marking its highest level in a year. It has increased nearly 3% since Donald Trump’s election victory.
The 10-year U.S. Treasury yield has reached 4.48%, its highest in 3.5 months. Investors are favouring the U.S. dollar over U.S. Treasuries due to Trump’s anticipated tariffs on imports and tax cuts.
On the back of the relentless upmove on the dollar, the rupee has been making new lows. The rupee has fallen less than other Asian currencies, mainly due to support from the Reserve Bank of India.
The central bank is letting the currency depreciate after the U.S. elections, aiming to avoid excessive volatility.
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