Rupee slumps to life-time low of 83.66 against dollar

The rupee declined on Thursday to a record intra-day low and also closed at an all-time low due to equity related outflows and importer demand even as the dollar gained strength against most Asian currencies.

Intra-day, the rupee declined to a life-time low of 83.6650 per dollar and closed at a new low of 83.6525 (previous record closing low: 83.5750). The Indian unit had closed at 83.4450 on Wednesday.

Rahul Kalantri, Vice-President, Mehta Equities, said the rupee tumbled to a record low on Thursday, pressured by likely outflows and strong dollar demand from local importers.

He said the Cabinet’s approval of higher MSP (minimum support price) for 14 kharif crops for the 2024-25 season, alongside increasing crude oil prices, heightened demand for US dollars, resulting in the rupee reaching a historic low.

“Nevertheless, the considerable inflows into Indian equities and bond markets could strengthen the rupee in the near future. We anticipate the rupee to remain volatile this week due to fluctuations in the dollar index.

“A close above 83.50 would be unfavorable for the rupee, potentially leading to further depreciation towards the 83.95 and 84.20 levels,” opined Kalantri..