The Indian rupee continued its downward trend, hitting a new all-time low of 85.35 against the US dollar in early trade on Friday. This marked the fourth consecutive session of depreciation, with the rupee losing 8 paise from its previous close.
The decline was largely driven by the strengthening of the US dollar, bolstered by an increased demand from importers for month-end and year-end payment obligations.
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The rupee’s slide was also influenced by continued foreign capital outflows, with Foreign Institutional Investors (FIIs) being net sellers in the capital markets, offloading shares worth Rs 2,376.67 crore on Thursday. Meanwhile, Brent crude oil prices rose slightly to $73.31 per barrel.
Despite this pressure, some factors provided a buffer to the rupee’s fall. Easing global crude oil prices helped, as did positive domestic equity market performance, which saw the Sensex rise by 207.16 points (0.26 per cent) and the Nifty gain 88.50 points (0.37 per cent).
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At the same time, the dollar index, which tracks the strength of the US currency against a basket of six major currencies, increased by 0.04 per cent, standing at 107.93. This was influenced by rising US Treasury yields, with the 10-year bond hovering around 4.50 per cent.
(With PTI Inputs)
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