Indian rupee slips to all-time low on outflow worries

-, Aug 05, 2024, India Blooms News Service

Mumbai/IBNS: Indian rupee opened at a record low against the US dollar on Monday, on worries that the risk off prompted by US recession worries could lead to foreign outflows, reports said.

According to reports, the rupee opened at 83.78 to the US dollar compared to its previous close of 83.75, and slipped past the all-time low of 83.7525 hit on Friday (Aug 2).

The selloff in US and Asian equities following a disappointing jobs report spurred worries of foreign outflows from India and other emerging markets, reports Reuters.

The sharp selloff may prompt the Reserve Bank of India (RBI) to let USD/INR move higher to 83.90, Reuters reported, quoting a trader at a public sector bank.

Meanwhile, the US dollar index, which measures the greenback against a basket of currencies including the yen and the euro, slipped 1.15 percent to 103.22.

Indian stock market benchmark indices, BSE Sensex and NSE Nifty 50, opened with major cuts on Monday following a slump in Asian markets, as reported by Mint.