Currencies

Indian rupee plummets to historic low against US dollar


The Indian rupee has reached a historic low, closing at 84.0775 against the US dollar, driven by regional currency pressures and significant foreign equity sales.

The rupee’s plunge is due to a mix of regional and global financial forces. Asian currencies have shown weakness recently, and foreign investors have offloaded nearly $10 billion in Indian stocks this October, worsening the situation, News.Az reports, citing foreign media.

Meanwhile, the dollar remains strong, bolstered by a robust dollar index at 103.9 and rising US Treasury yields nearing a three-month high of 4.20%. ING Bank noted deleveraging trends ahead of the US election, adding to the dollar’s appeal.

These factors, along with strong demand for dollars from foreign banks dealing with equity outflows, have intensified pressure on the rupee.

In response, the Reserve Bank of India intervened by having state-run banks offer dollars to cushion the currency’s fall. Despite these efforts, both the BSE Sensex and Nifty 50 indices saw declines exceeding 1%.

The Indian market is grappling with strong dollar demand linked to foreign equity outflows, shaking investor confidence. As the rupee falters, prominent indices like the BSE Sensex and Nifty 50 have dipped over 1%. This turbulence highlights the interconnected nature of regional currencies and stock market performance, raising concerns among both domestic and international investors.

News.Az 





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