Indian Rupee vs Dollar (Image Source: Times Now Digital)
New Delhi: The Indian rupee remained under pressure today, trading close to its all-time low. The decline impacted by the decline in regional currencies. At 11:20 am IST, the rupee stood at 84.0725 against the US dollar, nearly unchanged from Monday’s close of 84.06.
Indian Rupee vs US Dollar: All Time Low
The rupee had touched an all-time low of 84.0750 in the previous session after falling below the 84-mark for the first time last week. While the currency has weakened 0.3 per cent this month, it has performed better than other Asian peers, which have declined between 0.8 per cent to 3 per cent due to the strengthening US dollar.
US Dollar Index
The US dollar index rose to 103.3 on Tuesday, reaching its highest level in over two months. Other Asian currencies fell between 0.1 per cent and 0.8 per cent during the session.
How It Impacts Equities?
The continued outflow of foreign funds from Indian equities has also weighed on the rupee. So far this month, foreign investors have withdrawn around $8 billion from the domestic market. On Tuesday, India’s benchmark indices BSE Sensex and Nifty 50 were down 0.2 per cent each.
Forward Premiums And Bond Yields
Meanwhile, dollar-rupee forward premiums dipped. The 1-year implied yield dropped by 1 basis point to 2.20 per cent, impacted by rising US bond yields. The 1-year US Treasury yield climbed 7 basis points to 4.25 per cent during Asian trading hours.
(With Reuters Input)
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
