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The rupee fell to its fresh all-time low level on Friday on the back of dollar buying related to the expiry of the December currency futures contract and maturing NDF (non-deliverable forward) positions as well as month-end dollar demand.
At the interbank foreign exchange, the rupee opened weak at 85.31 and slipped further to hit its lifetime low of 85.80 against the US dollar.
Sliding for the fourth straight session, the rupee on Friday hit its fresh all-time low of 85.80 per US dollar amid continued dollar strengthening and capital outflows from India. The domestic currency on Friday fell by a significant 53 paise to 85.80 to a dollar as compared with the 85.27 closed in the previous session.
“The rupee fell to its fresh all-time low level on the back of dollar buying related to the expiry of the December currency futures contract and maturing NDF (non-deliverable forward) positions as well as month-end dollar demand,” said Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP.
According to analysts, the local unit was weighed down by the dollar’s strength amid the greenback’s increased demand by importers for month-end and year-end payment obligations. However, easing crude oil prices globally and positive cues from domestic equity markets capped the fall in the Indian unit.
At the interbank foreign exchange, the rupee opened weak at 85.31 and slipped further to hit its lifetime low of 85.80 against the greenback, registering a loss of 53 paise from its previous closing level.
The rupee plunged 12 paise to its record low closing mark of 85.27 against the dollar on Thursday, after declining 13 paise in the previous two sessions.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.04 per cent at 107.93 amid soaring US Treasury yields with 10-year bond hovering around 4.50 per cent.
Brent crude, the global oil benchmark, rose 0.07 per cent to USD 73.31 per barrel in futures trade.
In the opening trade, on the domestic equity market front, the 30-share benchmark index Sensex was trading higher by 207.16 points, or 0.26 per cent at 78,679.64 points. The Nifty was up 88.50 points, or 0.37 per cent, at 23,838.70 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth Rs 2,376.67 crore, according to exchange data.