Rupee: Rupee slides to all-time low due to outflows from local stocks

Mumbai: The rupee hit a fresh record low level on Thursday, closing at 84.49 per US dollar, due to outflows from local stocks that were dragged further down due to weakening of Adani group shares and the safe-haven dollar demand from foreign investors.

The rupee closed at its all-time low of 84.4925 per US dollar, down nearly 0.1% on Thursday. On an intraday basis, the local currency touched a record low of 84.495/$1, LSEG data showed.

Pressured by a sharp decline in Adani group shares, India’s benchmark stock indexes, the BSE Sensex fell 0.5% and Nifty 50 fell 0.7%. Stocks of the group’s listed firms fell after US authorities accused Gautam Adani for his alleged role in a $265-million scheme to bribe Indian officials. Foreign investors sold $4.1 billion from Indian stocks and bonds in November, depository data showed.

The rupee depreciated 10 paisa on Thursday, with a steady depreciation as the Reserve Bank of India protected the currency briefly at 84.45/$1 and 84.49/$1 levels, traders said. “The RBI did not protect any levels for a long time on Thursday and we saw a steady depreciation with foreign investors buying dollars,” said Anil Bhansali, head of treasury at Finrex Treasury Advisors.

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