Indian rupee hits all-time low

The Indian rupee reached an all-time low on Monday, driven by a weaker Asian currency landscape and increased demand for dollars from foreign banks.

The rupee, which breached the key support level of 84 for the first time on Friday, closed unchanged at 84.06 after hitting a record low of 84.0750 earlier in the session.

Foreign banks’ dollar bids, likely on behalf of custodial clients, and weakness in most regional currencies contributed to the rupee’s decline.

Overseas investors have been net sellers of Indian stocks for the past 10 trading sessions, offloading nearly $8 billion.

While the benchmark Indian equity indices, the BSE Sensex and Nifty 50, rose on Monday, they have declined by about three per cent this month.

Asian currencies were mostly lower, with the offshore Chinese yuan down 0.3 per cent to 7.08 per dollar. Investors were assessing the economic implications of the recent fiscal measures announced in China.

Attribution: Reuters

Subediting: M. S. Salama