January 13, Monday: Rupee got lower than ever at 86 per dollar. The Indian rupee fell to an all-time low, beating the 86 mark against the US dollar on Monday. 0.4% fell hitting 86.39 rupees with the downfall being in line with which comes as a weakness in all Asian currencies.
According to the reports the US nonfarm payrolls revealed data showing that 256,000 jobs were added last month, which far exceeded expectations of 160,000. This Apprehensive activity in the US services and manufacturing sectors showcased the strength of the world’s largest economy. The latest financial figures reduced expectations of prompt interest rate reductions by the Federal Reserve, strengthening the dollar and putting pressure on the rupee.
Sluggish portfolio inflows are intensifying the strain on the rupee. Foreign investors have pulled out over $4 billion from Indian equities this month alone, following nearly $11 billion in outflows during the previous quarter.
Diminished confidence in Indian portfolios among foreign investors, coupled with uncertainty surrounding Trump’s proposed policies, has driven speculators to increase bearing positions on the rupee and ramp up their hedging activities.
For more updates follow questiqa.in and questiqa.com
