Rupee hits record low of 85.84 vs $ – Newz9

MUMBAI: The rupee fell to a lifetime low on Monday, weakening to 85.84 in opposition to the greenback and surpassing its earlier low of 85.81 recorded in late Dec. It ended the day at 85.83 – down six paise from Friday’s shut of 85.77. A stronger greenback, tepid capital flows, and weak sentiment within the fairness markets continued to weigh on the foreign money.
regardless of RBI intervention Through greenback promoting, the rupee has remained below strain. Traders stated that RBI seems to be holding the rupee till the brand new US administration’s place on tariffs turns into clearer.
The greenback index – which measures the buck in opposition to six currencies – slipped 0.3% to 108.5, retreating from a two-12 months excessive. After market hours, the greenback index retreated after stories that the US would impose tariffs solely on vital imports. However, the greenback recouped losses after Fed governor Lisa Cook indicated a cautious method to price cuts resulting from inflation issues, additional supporting the greenback.
Equity markets additionally confronted sharp declines. The Sensex fell 1,258 factors or 1.6% to 77,965, whereas the Nifty dropped 389 factors or 1.6% to 23,616. Foreign traders bought $1.1 billion in Indian shares and bonds in January to date, in accordance with knowledge, reflecting weak market sentiment. FPIs offloaded Rs 4,227 crore on Friday alone.
Rising US bond yields and protected-haven demand for the greenback added to the rupee’s woes, compounded by issues over an HMPV virus outbreak. Brent crude traded at $76.3 per barrel, down 0.3%, additional pressuring rising markets.
ING Bank has predicted the greenback index might quickly contact 110. In the worldwide markets, Japan’s yen led declines amongst group-of-10 currencies in opposition to the buck, whereas the Australian and New Zealand {dollars} had been the standout performers. China maintained its help for the yuan with the each day reference price after the foreign money slumped previous a key degree on Friday.