New Delhi: The Indian rupee hit a record closing low of Rs 83.45 per dollar on Monday (April 15) due to escalating tensions in the Middle East, despite trading in a narrow range throughout the day.
The local currency had hit the same level on April 4. It had hit the intra-day low of Rs 83.48 a dollar on November 10, 2023, Business Standard reported.
Rupee on Monday performed better than the majority of the Asian currencies. While several Asian currencies experienced declines against the US dollar in a range of 0.2% to 0.4%, the rupee remained comparatively stable with marginal depreciation of 4 paise, the newspaper said.
So far this year, the Indian rupee ranked as the third most stable currency, trailing behind the Bangladesh Taka and the Hong Kong Dollar.
While the rupee depreciated by 0.3%, the Bangladesh Taka and Hong Kong Dollar depreciated by 0.1% and 0.2%, respectively.
On Tuesday, the rupee depreciated 9 paise to 83.53 against the US dollar in early trade, due to a strong dollar and elevated crude oil prices.
According to news agency PTI, forex traders said a negative trend in domestic equities and sustained foreign fund outflows also dented investor sentiments.
“Rupee fell further as foreign portfolio investors continued to buy dollars and sell stocks on risk aversion due to Middle East tensions and US yields heading higher,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, told PTI.
“Need to watch what the Reserve Bank of India (RBI) does to counter the rupee depreciation,” Bhansali added.
