Rupee Hits Record Low of 84.76 Amid Dollar Strength and FII Outflows – The rupee posted a new low for the Indian currency, falling by four paise in early trades on Tuesday to 84.76 against the US dollar because of a strong dollar and foreign portfolio investment outflows. In the interbank exchange, the rupee bounced at 84.75 and was range-bound before falling to a low point. Forex traders attributed the rupee’s fall to Trump’s threats to apply 100% tariffs on BRIC countries, eurozone political instability, and poor performance of the Indian economy.
Volatility also prevailed as investors remained under pressure due to the uncertainty on the result of the upcoming RBI monetary policy on December 6. The rupee is one of Asia’s best-performing currencies despite the headwinds, said Pankaj Chaudhary, Minister of State for Finance.
He pointed to the rebound in the USD Dollar Index, which rose 4.8% in 2024 and reached a 13-month high of 108.07 on November 22. Geopolitical risks in the Middle East and the US presidential elections aggravated depreciation pressures. On the one hand, when the rupee is weak, exports become more competitive, but on the other hand, import prices go up, which affects inflation rates.
Also Read: GQG Shares Fall 13% After Analyst Downgrade Following Adani Group Indictment
HDFC Bank Shares Surge to Record High
On the other hand, HDFC Bank shares rose 1.81% to record ₹1,837.40 on NSE, with market capitalization touching ₹14 lakh crore, while the rupee hit an all-time low tonight at ₹74.37 against the dollar. The rally resulted from a block deal of 21.7 lakh shares worth ₹392 crore and a rise in HDFC’s weight in MSCI indexes. The bank’s stock price increased by 16.9% in the past half a year and 7.2% this year. By 11:36 AM, HDFC was at ₹1,834.75, 1.67% higher.
Market Snapshot
As it could be seen, non-US stocks rose while currency troubles persisted. The benchmark BSE Sensex rose by 192.33 points to end at 80,440.41, and the NSE Nifty gained 53.10 points to close at 24,329.15, with the financial sector rallying.
