Mumbai: The Indian rupee dropped to an all-time low on Monday. As per forex traders, persistent dollar demand from foreign banks and elevated crude oil prices weighed upon the Indian currency. However, the Reserve Bank of India’s intervention, backed by record-high reserves has supported the local unit at lower levels.
At the interbank foreign exchange, the Indian rupee opened at 84.06 against the US dollar and traded in a tight range. In initial trade it touched 84.05, registering a rise of 5 paisa over its previous close. On Friday, the rupee on Friday fell 12 paise to a record low of 84.10 against the US dollar.
Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading 0.13 per cent higher at 103.02.
Foreign institutional investors (FIIs) were net sellers in the Indian capital markets on Friday as they offloaded shares worth Rs 4,162.66 crore. Meanwhile, India’s forex reserves dropped by $3.709 billion to $701.176 billion for the week ended October 4. In the previous reporting week, the reserves had jumped by $12.588 billion to an all-time high of $704.885 billion.
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