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Rupee Hits New Record Low Near 91.28 per Dollar as Selloff Deepens

Foreign outflows with heavy importer dollar buying drove the slide.

Overview

  • The currency touched a fresh intraday low around 91.19–91.28 in early trade Wednesday after a record close of 90.97 on Tuesday.
  • Foreign portfolio investors have withdrawn more than $2.7 billion from Indian markets this month, according to NSDL data, intensifying pressure on the rupee.
  • Traders pointed to strong dollar demand from metal importers, which lifted corporate buying of the greenback.
  • Domestic equities remained weak, with the Sensex opening lower on Wednesday after a 1,065-point slump the previous session, further souring sentiment.
  • Market participants reported intermittent RBI action near the 91 level to moderate the pace of depreciation, while expecting continued volatility ahead of the Feb. 1 Union Budget and the upcoming US Fed decision.