Rupee depreciates to another all time low of ₹90.7 a dollar - The Hindu
The Indian rupee weakened sharply, closing at a record low against the US dollar as strong global demand for the greenback continued to pressure emerging market currencies. The fall was driven by a mix of rising US bond yields, persistent foreign fund outflows, and concerns over global economic uncertainty. Market participants noted that importers’ demand for dollars, especially from oil companies, added further stress on the rupee during the trading session. Despite occasional intervention efforts, the currency remained under pressure due to expectations that US interest rates may stay higher for longer. Analysts believe that volatility could continue in the near term, depending on global inflation data, crude oil prices, and the Reserve Bank of India’s currency management strategy. While the weaker rupee may support exporters, it could also increase import costs and inflationary risks for the Indian economy.
The Key points
- Rupee closed at an all-time low against the US dollar.
- Strong dollar demand impacted emerging market currencies.
- Rising US bond yields added pressure on the rupee.
- Foreign portfolio investor outflows weakened sentiment.
- Oil importers increased dollar buying during the session.
- Global economic uncertainty influenced currency markets.
- RBI intervention was limited amid high volatility.
- Exporters may benefit from a weaker rupee.
- Import costs and inflation risks could rise.
- Near-term rupee movement depends on global cues and data.
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