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Indian Rupee Hits All-Time Low at 83.13 Against US Dollar

September 6, 2023 – The Indian rupee faced significant pressure on September 6, as it touched an all-time low of 83.13 against the US dollar. Several factors contributed to this decline, including a robust US dollar, rising crude oil prices, and Foreign Portfolio Investment (FPI) outflows.

Here are the key highlights of the rupee’s performance:

1. Strong Dollar: The US dollar reached a six-month high, with the dollar index climbing from 104 to 104.78. Market speculation about US Federal Reserve rate hikes fueled this rise.

2. Crude Oil Prices: Elevated crude oil prices, reaching $90 per barrel, have intensified India’s trade deficit and current account deficit (CAD). Continuous dollar purchases by oil companies have kept demand for the dollar high.

3. FPI Outflows: Foreign Portfolio Investors (FPIs) have been capitalizing on high equity market valuations by booking profits and withdrawing funds from India. Over the past two days, FPI outflows from equities totaled nearly Rs 5,000 crore.

4. Regional Trends: The decline in the rupee is not an isolated event, as other Asian currencies have also experienced setbacks. The Chinese Yuan, for instance, touched 7.32 against the dollar, influenced by widening interest rate differentials between the US and China and an economic slowdown in China.

Market analysts believe that some level of rupee depreciation is essential for India to maintain competitiveness. However, the currency’s current trajectory is a matter of concern, and stakeholders will be closely monitoring developments in the coming days.

Rupesh Kumar Singh
Rupesh Kumar Singhhttp://www.news-next.in
Rupesh Kumar Singh, a seasoned journalist since 2005, excels in crime and business journalism, known for accuracy and insightful reporting.
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