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Rupee crashes to new lows against US dollar on Monday
Jan-13-2025
Indian rupee weakened and crashed to new life-lows of 86.43 against the US dollar tracking strengthening American currency amid sustained outflow of foreign capital and volatile global cues, while better-than-expected US payrolls data fuelled expectations of slower interest rate cut by the Federal Reserve. Moreover, weak domestic equities and record surge in crude oil prices have also dampened sentiments. Foreign institutional investors offloaded Rs 2,254.68 crore in the capital markets on a net basis on Friday, exchange data showed. India’s forex reserves dropped by $5.693 billion to $634.585 billion in the week ended January 3, the RBI said. However, some weakness were limited after data showed that India's industrial production (IIP) growth accelerated to a six-month high of 5.2% year-on-year in November 2024, riding on the increased festive demand and pick-up in the manufacturing sector.

The partially convertible currency is currently trading at 86.43, weaker by 39 paise from its previous close of 86.04 on Friday. The currency touched a high and low of 86.43 and 86.11 respectively.

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