AIRLINK 164.00 Decreased By ▼ -1.36 (-0.82%)
BOP 10.58 Increased By ▲ 0.19 (1.83%)
CNERGY 8.40 Increased By ▲ 0.57 (7.28%)
FCCL 47.24 Increased By ▲ 1.59 (3.48%)
FFL 15.30 Increased By ▲ 0.18 (1.19%)
FLYNG 26.45 Decreased By ▼ -0.03 (-0.11%)
HUBC 137.19 Increased By ▲ 1.91 (1.41%)
HUMNL 12.99 Increased By ▲ 0.14 (1.09%)
KEL 4.30 Increased By ▲ 0.11 (2.63%)
KOSM 5.63 Increased By ▲ 0.16 (2.93%)
MLCF 60.80 Increased By ▲ 1.37 (2.31%)
OGDC 215.60 Increased By ▲ 2.53 (1.19%)
PACE 5.54 Increased By ▲ 0.13 (2.4%)
PAEL 41.89 Decreased By ▼ -0.12 (-0.29%)
PIAHCLA 17.65 Increased By ▲ 0.60 (3.52%)
PIBTL 10.22 Increased By ▲ 0.29 (2.92%)
POWER 11.88 Increased By ▲ 0.09 (0.76%)
PPL 174.68 Decreased By ▼ -0.11 (-0.06%)
PRL 35.65 Increased By ▲ 1.29 (3.75%)
PTC 22.95 Increased By ▲ 0.25 (1.1%)
SEARL 95.08 Increased By ▲ 1.33 (1.42%)
SSGC 36.47 Increased By ▲ 0.36 (1%)
SYM 14.00 Increased By ▲ 0.52 (3.86%)
TELE 7.27 Increased By ▲ 0.15 (2.11%)
TPLP 10.25 Increased By ▲ 0.04 (0.39%)
TRG 61.93 Increased By ▲ 1.00 (1.64%)
WAVESAPP 10.39 Increased By ▲ 0.11 (1.07%)
WTL 1.31 Increased By ▲ 0.03 (2.34%)
YOUW 3.72 Increased By ▲ 0.02 (0.54%)
BR100 12,388 Increased By 74.4 (0.6%)
BR30 36,995 Increased By 487.9 (1.34%)
KSE100 115,532 Increased By 623 (0.54%)
KSE30 35,662 Increased By 120.4 (0.34%)

MUMBAI: The Indian rupee weakened to its all-time low on Wednesday, pressured by heightened dollar bids in the non-deliverable forwards (NDF) market, while likely intervention by the Reserve Bank of India (RBI) helped limit losses, traders said.

The rupee fell to 84.86 in early trading, eclipsing its previous record low of 84.8575 hit on Tuesday. The currency was quoted at 84.8525 as of 10:00 a.m. IST.

State-run banks were spotted offering dollars, most likely on behalf of the RBI, traders said.

There is “quite strong demand in NDF which is hurting the rupee,” a trader at a foreign bank said, who expects the RBI to stay active and keep intra-day losses limited to 5-7 paisa.

Pressure from the NDF market also meant that the rupee was unable to benefit from a rise in most of its regional peers.

The dollar index was steady at 106.3 while most Asian currencies ticked up as investors awaited the closely watched U.S. inflation data due later in the day.

Indian rupee hit all-time low as RBI governor change sparks rate cut hopes

The rupee has weakened 0.4% in December, underperforming nearly all of its regional peers as concerns over slowing economic growth have prompted expectations of domestic monetary policy easing.

While India’s central bank kept rates unchanged at its last meeting, the appointment of a new chief has fuelled expectations of rate cuts next year, weighing on the rupee.

Investors will also pay close attention to the incoming Donald Trump administration’s policies with expected U.S. trade tariffs posing a risk to emerging market assets.

“We expect USD/INR volatility to rise, though it would be unwise to expect USD strength to last the year (2025),” Neelkanth Mishra, chief economist at Axis Bank, said in a note.

The bank expects the rupee to weaken to 85.50 by the end of March 2025.

Comments

200 characters