The Indian rupee breaches 84 mark against US dollar on Friday, October 11, 2024 for the first time in history. The Indian currency dropped 0.1% to a new record low of 84.0975 on Friday, as per the report of Bloomberg. Notably, the last lifetime low for the Indian Rupee was 83.9850. This came on September 12.
Meanwhile, Indian stock market ain’t supportive as well in Friday trade. India’s benchmark indices Sensex and Nifty opens in red on Friday. 30 firm Sensex opened 132.92 points lower at 81,478.49 points, whereas, the Nifty50 dipped 13.15 points to open at 24,985.30 points. Both indices remains low during the trading hours on Friday.
Rupee Breaches 84 mark: Why?
The Indian rupee breaches 84 mark against US dollar for the first time in history. High oil prices remains one of the major contributors to the breach. Brent oil prices have reportedly rallied more than 10% this month so far. Crude oil prices do eased on Friday after a rally on Thursday but remains quite high.
Another factor contributing to fall of the Indian rupee is the outflow by Foreign Investors. Foreign Institutional Investors (FIIs) were net sellers in the Indian stock market on Thursday. FII sold the shares worth Rs 4,926.61 crore giving strength to the Greenback.
According to the data available with NSDL, Foreign Portfolio Investors remained the sellers in the Indian equity market in October, 2024. These investors have sold the shares worth Rs 53,974 crore in October only. They were the net buyers in September 2024 and invested Rs 57,724 crore in Indian equity markets during the month.
Notably, Reserve Bank of India (RBI) during its recent Monetary Policy Committee (MPC) meeting has changed its monetary policy stance of ‘withdrawal of accommodation’ to ‘neutral’. The central bank kept the Repo Rate unchanged at 6.5%.
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