Mumbai: The Indian rupee fell to all-time low against the US dollar in early trade on Wednesday. As per forex traders, rising expectations of a shift in the Reserve Bank’s monetary policy stance post the appointment of Sanjay Malhotra as the new RBI governor influenced investors. Investors now expect a rate cut in the upcoming monetary policy in February. The government on Monday appointed Revenue Secretary Sanjay Malhotra as the 26th Governor of the Reserve Bank of India. While a muted tone in the domestic market and the overall strength of the US dollar index further pressurised the rupee.
At the interbank foreign exchange, the Indian rupee opened at 84.87, its all-time low against the US dollar, registering a fall of 2 paise over its previous close. On Tuesday, the Indian rupee settled for the day on a flat note higher by just 1 paisa at 84.85 against the US dollar.
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The dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading lower by 0.07 per cent at 106.32.Foreign Institutional Investors (FIIs) were net buyers in the Indian capital markets on Tuesday, as they purchased shares worth Rs 1,285.96 crore.
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