Rupee Weakens To All Time Low As FII's Continue To Sell

The Rupee opened weaker against the dollar at 85.89. The currency weakened by 9 paise to a record low of 85.94 against the US Dollar after opening.

Rupee had opened four paise weaker to open at an all time low, according to Bloomberg. It had closed at Rs 85.86 on Wednesday.

The local currency had hit a record low of 85.846 against the dollar after opening at 85.82, on Wednesday. The currency had strengthened by 4 paise when it opened on Tuesday, before closing weaker as well.

Indian rupee fell yesterday to its lowest at 85.86 and was expected to open lower at 85.91 this morning, unless RBI wants to keep a tab over its fall as it was selling at 85.86 yesterday, according to Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP.

"Foreign Institutional Investors have maintained a selling stance, driven by global risk aversion and weaker domestic data," according to Amit Pabari, managing director of CR Forex Advisors.

The revision in trade deficit figures had no effect on the rupee's fall as it continues to move to new record lows daily, Bhansali noted.

India Forex And Asset Management expects the Rupee to trade at 85.81 to 85.87 for the day. While, Bhansali expects the rupee to trade in the Rs 85.75 to 85.97 range on Thursday, with exporters on the watchful side for hedging. Importers are advised to buy dollar dips.

Brent Crude oil was at $76.05, down 0.11%.

"Brent oil prices fell to $75.85 per barrel on strong dollar and an unexpected increase in US inventories, while weak economic data from China weighed. While hawkish signal from Fed increased bets that Central Bank will cut rates at a far slower pace than in 2024, China CPI reading was a muted number, as it shrunk for a 27th consecutive month," according to Bhansali.

The US Dollar Index stood at 108.9590, down 0.12%.