Rupee Falls 1 Paisa To All-Time Low Of 84.38 Against US Dollar.

The Indian rupee dropped to an all-time low of 84.38 against the US dollar in early trade, slipping by one paisa on Monday, according to PTI. This is the third day in a row that the rupee has dropped and the main reasons for this decline are foreign investors pulling their money out of India and the country’s stock market performing poorly. As a result, the rupee’s value continues to go down.

This sudden rupee depreciation also comes as Republican candidate Donald Trump won the US presidential election. It is expected that these inflationary policies may further boost the dollar’s strength. It was on Thursday, the rupee hit an all-time low of Rs 84.32 against the US dollar. 

The RBI is expected to maintain a cautious approach to market intervention by focusing on reducing volatility rather than trying to influence the rupee’s direction.

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Despite a correction in the dollar index that helped restrain the slide, the rupee ultimately settled at Rs 84.37; this marked a new lifetime low that was further followed by a Rs 22-paise depreciation on Wednesday. Now, slipping by one paisa today has been marked an all-time low.

The dollar index, which measures the greenback’s strength against six currencies, traded 0.22 per cent lower at Rs 104.86. Meanwhile, Brent Crude, which is the global oil benchmark, fell 0.32 per cent to $74.68 per barrel in futures trade.

As per the reports, Trump’s protectionist policies and “America First” approach are expected to lead to increased tariffs on Indian goods that may affect sectors like pharmaceuticals, textiles, and IT services. This could create headwinds for Indian companies with major US exposure, such as TCS, Infosys, and Wipro.

Also Read| Rupee Hits Record Low Of 84.32 Against Dollar After Trump’s Victory