The rupee fell to an all-time low of 84.3875 in early trading, going below its previous all-time low of 84.38 on Friday
The rupee weakened to a record low on Monday, November 11, 2024 after worries regarding Donald Trump’s victory in the US presidential elections pressured Asian currencies and also triggered outflows from the Indian stock market, according to a Reuters report.
A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu.(Reuters)
The rupee fell to 84.3875 in early trading, going below its previous all-time low of 84.38 on Friday.
A likely intervention from the Reserve Bank of India (RBI) kept it from falling further, the report cited traders as saying.
However, a Bloomberg report said that the RBI was ready to let the rupee weaken in tandem with the Chinese yuan because of Donald Trump’s win creating fears of higher US tariffs.
This is because a depreciating Chinese yuan will make Chinese goods cheaper and further increase India’s trade deficit.
Asian currencies were however, mostly 0.1% to 0.4% weaker while the dollar index didn’t change too much at 105, being close to a four-month high seen last week because of Trump’s win, according to the Reuters report.
On top of this, state-run banks were also offering dollars on Monday, likely on the RBI’s behalf, according to the report. RBI interventions led to a decline in India’s foreign exchange reserves to a 2-month low of $682.13 billion as of Nov. 1.
