Global conflicts, FPI outflow: ` hits record low at 83.54/$

THE RUPEE closed at an all-time low of 83.54 against the US dollar on Tuesday on strong demand for the greenback amid escalation of tensions in West Asia and outflows from foreign portfolio investors (FPIS).

A rise in the US bond yield to 4.66-4.67 per cent also kept the rupee under pressure, analysts said.

The domestic currency depreciatedby 9 pa is e to en data record low of 83.54 against the US currency, compared to the previous close of 83.45. The currency fell to 83.55 in the intraday trades.

“The Indian rupee drifted lower amid geopolitical worries and foreign fund outflows. However, the local rupee remained the median performer amid a better macro environment. Trimming trade deficit, expectations of dollar in flow sin debt markets and strong growth momentum have been supportive for the rupee,” said Dilip Parmar, the strengthening of the US dollar index, which rose above $106.

“This put pressure on the rupee, exacerbated by selling in the capital markets. Additionally, concerns over geopolitical issues in the Middle East added to the downward pressure on the rupee ,” said Jateen Trivedi, VP Research Analyst Commodity and Currency, LKP Securities.

According to Rahul Kalantri, VP – Commodities, Mehta Equities, the rupee is expected to remain volatile this week amid volatility in the dollar index and a pair could trade in the range of 83.22- 84.05.

In the near term, the rupee could see slow and steady depreciation towards 83.70-84 while holding the level of 83, HDFC Securities’s Parmar said.

Meanwhile, the domestic stock market continued to fall for the third consecutive day on Tuesday, with the Sen sex closing at 72,943.68, down 456 points, 0.62 per cent, and the Nifty slipped 124.6 points, or 0.56 per cent, to end at 22,147.9.