Indian Rupee Hits New Record Low Against UAE Dirham
- Publish date: Tuesday، 12 November 2024 | Last update: Tuesday، 10 December 2024
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The Indian rupee reached a new record low on Monday, falling to 84.3875 against the U.S. dollar (approximately Dh22.9938). This decline comes as investor concerns around the impact of Donald Trump’s recent U.S. election victory add pressure on Asian currencies. The rupee slipped just below its previous low of 84.38, set on Friday, continuing a pattern of vulnerability in recent days.
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Reserve Bank of India Steps In
Traders noted that intervention by the Reserve Bank of India (RBI) helped limit the rupee’s decline, with state-run banks observed offering dollars, likely on behalf of the RBI. This action has somewhat stabilized the currency, which traded at 84.37 (Dh22.98) around 9:40 a.m. IST on Monday.
Asian Currencies and Global Market Trends
Asian currencies also felt the pressure, with most trading down between 0.1% and 0.4%. Meanwhile, the dollar index remained strong, near a four-month high at 105, reflecting a strengthening dollar following the U.S. election results.
Impact on India’s Foreign Reserves
Continued interventions have taken a toll on India’s foreign exchange reserves, which fell for the fifth week in a row. As of November 1, reserves hit a two-month low of $682.13 billion, reflecting the challenges of maintaining currency stability.
Investor Sell Off in Indian Stocks
Foreign investors have pulled about $2.5 billion from Indian stocks so far in November, adding to the $11 billion withdrawn in October. This sell-off has affected India’s major stock indices, with the BSE Sensex and Nifty 50 both slightly down on Monday after recording their fifth weekly loss out of the past six weeks.