The rupee fell 5 paise to hit a new all-time low of 85.16 against the US dollar in early trade on Tuesday (December 24, 2024), amid strengthening American currency and sustained outflow of foreign capital.
Forex traders said higher dollar demand as well as an upward momentum in crude oil prices due to volatile geopolitical situation pushed the local unit further downward even as a positive domestic equity market provided some cushion.
They said the strong dollar and soaring bond yields in the US prompted the foreign investors towards profit-booking by selling Indian equities.
At the interbank foreign exchange, the rupee opened at 85.10 and slid further to hit a fresh all-time low of 85.16 against the greenback, registering a loss of 5 paise from its previous closing level.
On Monday, the rupee settled 7 paise lower at 85.11 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.10 per cent at 107.92, amid soaring US Treasury yields and the fear of delayed interest rate cuts by the US Federal Reserve.
Brent crude, the global oil benchmark, rose 0.30 per cent to USD 72.85 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex was trading marginally higher by 15.97 points, or 0.02 per cent at 78,556.14 points. The Nifty was up 13.70 points, or 0.06 per cent, at 23,767.15 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth Rs 168.71 crore, according to exchange data.
Published – December 24, 2024 10:08 am IST