Rupee Decline: Rupee declines to new low of 84.11/$ amid uncertainty

MUMBAI: The rupee slumped to a new all-time low of 84.11 against the US dollar on Monday, dragged down by weak domestic equities, persistent foreign capital outflows, and rising crude oil prices. The rupee’s fall came despite a weaker dollar, which was impacted by disappointing US economic data.
Analysts attribute the rupee’s decline to a combination of factors, including FII outflows, concerns about India’s current account deficit, and global risk aversion. While a softer US dollar offered some support, it failed to prevent the rupee from breaching the 84 mark with the domestic currency touching a low of 84.12 in intraday trade. “Our foreign exchange reserves, which stood at $704 billion at the beginning of October, ended the month at $684 billion. RBI has spent almost $20 billion in intervention,” said K N Dey, a forex consultant.