Rupee Depreciates To All-Time Low Of 84.30 Against US Dollar Post Trump’s Win In US Elections

The analysts noted that investors are anticipating the US Federal Reserve to announce a rate cut in a meeting schedule to be held later this week

A robust American currency against major rivals overseas and intense foreign fund outflows impacted market sentiment, forex traders noted.

Source : ABPLIVE AI

The Indian currency depreciated 21 paise to touch an all-time low of 84.30 (provisional) against the American dollar on Wednesday. This development followed Donald Trump winning the US Presidential Elections and becoming the next President of the United States.

A robust American currency against major rivals overseas and intense foreign fund outflows impacted market sentiment, forex traders noted. This resulted in a rally seen in the US dollar index, reported PTI.

The analysts noted that investors are anticipating the US Federal Reserve to announce a rate cut in a meeting schedule to be held later this week. At the interbank foreign exchange, the Indian rupee opened at 84.23 against the US dollar, and traded in the range of 84.15 and 84.31 during the day. Finally, the domestic unit settled at 84.30 (provisional) against the American counterpart.

Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, noted, “We expect the rupee to trade with a negative bias on strength in the US Dollar and FII outflows. However, a rise in risk appetite in global markets and a decline in commodity prices may support the rupee at lower levels.Any intervention by the RBI may also support the rupee at lower levels. Investors may remain cautious ahead of the FOMC meeting outcome later this week. USD/INR spot price is expected to trade in a range of 84.10 to 84.40.”

Brent crude, the global oil benchmark, slipped 1.43 per cent to $74.45 per barrel in futures trade. Meanwhile, the BSE Sensex rallied just over 900 points or 1.13 per cent to close trading at 80,378.13 on Wednesday, and the Nifty50 climbed 1.12 per cent to settle down at 24,484.05 points.

India’s services sector clocked an improvement in October as the PMI climbed to 58.5, recovering from a ten-month low in September. This was backed by a robust expansion in output and new business.