Mumbai: The Indian touched an all-time low against the US dollar in early trade on Wednesday. As per forex traders, persistent foreign fund outflows and a muted trend in domestic equities weighed on the local currency. This downward pressure is largely driven by global factors, particularly the Dollar Index’s strengthening in the global market.
At the interbank foreign exchange, the Indian rupee opened at 84.40 against the US dollar, registering a fall of 1 paisa over its previous close. On Tuesday, the rupee fell 1 paisa to a new lifetime low of 84.39 against the US dollar.
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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading lower by 0.04 per cent at 105.98. Foreign Institutional Investors (FIIs) were net sellers in the Indian capital markets on Tuesday, as they offloaded shares worth Rs 3,024.31 crore, according to exchange data.
On the macroeconomic front, retail inflation based on the consumer price index (CPI) in India surged to a 14-month high of 6.21 per cent in October mainly on account of rising food prices. India’s industrial production expanded by 3.1 per cent in September.
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