Indian rupee hits record low at 83.37 against US dollar
What's the story
The Indian rupee experienced a slight dip on Friday, closing at a record low of 83.37 against the US dollar, a 3 paise decrease from its previous close of 83.34. This decline is attributed to the weakening of Asian currencies and increased dollar demand from foreign banks. Additionally, the dollar index, which measures the US dollar's strength against six other currencies, dropped by 0.15% to 103.77.
Details
Factors affecting rupee and market performance
US Treasury yields increased, with the 10-year yield reaching 4.47% and the 2-year yield rising to 4.94%, as reported by Reuters. Dilip Parmar, a foreign exchange research analyst at HDFC Securities, stated, "Broadly, the rupee is likely to stay rangebound but small depreciations can't be ruled out." The rupee's value was further pressured by a 0.31% increase in Brent crude futures, the global oil benchmark, which reached $81.67 per barrel.
What Next?
Equity inflows and domestic market outlook
In the coming week, the rupee may find some support from equity inflows of around $1.5 billion related to the MSCI index rebalancing, effective November 30, according to Nuvama Alternative & Quantitative Research. On the domestic front, Indian benchmark equity indices closed flat but in red, with the Sensex dropping 47.77 points (0.07%) to 65,970.04 and the Nifty50 falling 7.30 points (0.04%) to 19,794.70.