Thursday saw the Indian rupee drop to an all-time low of 83.72 (Dh22.81) against the US dollar, weighed down by the dollar’s strength in international trade and sizable outflows of foreign funds.
The currency has fallen for the fourth day in a row. The rupee’s decline has been restrained by frequent interventions by the Reserve Bank of India. There is no way you can think of a breakout while we keep making fresh highs (on the dollar/rupee),” a bank currency trader said. “The RBI is doing what it does and managing the extent of price moves.
According to forex traders, the decline in the domestic unit followed a sharp decline in the Indian equity markets, which was caused by the government’s decision to raise the capital gains tax rate.
The local unit traded in a limited range on the interbank foreign exchange market. It fell 1 paisa from its previous close, opening at an all-time low of 83.72 against the US dollar.
The rupee fell 2 paise against the US dollar on Wednesday, closing at an all-time low of 83.71. The government’s decision to increase the capital gains tax rate lowered investor confidence and put significant pressure on the rupee and the equity market.
Also Read:
How Artificial Intelligence Features are Incorporated into the New IPhone 16
The Private Sector will Strengthen its Ties with Tunis and Sharjah
