The rupee dropped to 83.2950, surpassing its previous all-time low of 83.29 reached in October of last year.
On Monday, the rupee fell 13 paise to its preliminary lifetime low of 83.29 against the US dollar, marking the fourth consecutive day of depreciation. The primary causes of this decline were rising crude oil prices and risk aversion in international markets.
Additionally, according to Forex dealers, investor morale was affected by the strong US dollar relative to major international competitors as well as the downward trend in local equity.
Before significant economic data from the US is announced, volatility is predicted to stay high. The focus will be on the RBI policy announcement domestically; analysts anticipate that the central bank may hold interest rates, and any dovish remarks may lead to a depreciation of the rupee, according to Gaurang Somaiya, a forex and bullion analyst at Motilal Oswal Financial Services.
The BSE Sensex closed 241.79 points, or 0.36%, lower at 67,596.84 points on the domestic equities market, while the Nifty fell 59.05 points, or 0.29%, to finish at 20,133.30 points.
Forex dealers have identified other causes contributing to the depreciation of the rupee, including the strong US dollar, high crude oil prices, outflows of foreign funds, and an expanding trade deficit.
Relative to the same month last year, India’s exports dropped by 6.86% to $34.48 billion in August of this year, according to government figures released on Friday.
In August 2022, imports totaled $61.88 billion, but they also decreased by 5.23% to $58.64 billion.
India’s foreign exchange reserves decreased by $4.992 billion to $593.904 billion during the week that concluded on September 8, according to a Friday statement from the Reserve Bank of India.
