The rupee fell to a record low of 84.71 per dollar in early trade, driven by weak domestic economic data and tracking the performance of Asian currencies. Dealers noted that the rupee had settled at 84.49 on Friday, reflecting ongoing depreciation concerns.
The dollar index rose 0.5% to 106.26, indicating the greenback’s strength against a basket of six major currencies. The rupee depreciated 0.48% against the dollar in November, following a 0.25% decline in October, highlighting sustained pressure on the local currency.
President-elect Donald Trump’s warning of 100% tariffs on BRICS nations intensified concerns, strengthening the dollar. Market focus shifted to key US economic reports, including job openings and payroll data, alongside Federal Reserve officials’ speeches, as investors seek rate cut cues.
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India’s economic growth slowed to a seven-quarter low of 5.4% in July-September FY25, significantly below the projected 6.5%. The industrial slowdown and reduced investment demand raised alarm over the country’s growth trajectory, contributing to currency market volatility.
Brent crude traded above $72 per barrel, driven by China’s slow economic recovery and OPEC+’s expected production decisions. Geopolitical tensions in the Middle East added to the risk premium as Israel resumed attacks on Lebanon despite a ceasefire agreement.
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India’s five-year bond yield fell six basis points to 6.62% on hopes of monetary easing by the Reserve Bank of India. Traders anticipate a rate decision on December 6, with the economic slowdown and rupee depreciation increasing bets on possible rate cuts.
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