close_game
close_game

Rupee falls to an all-time low as Donald Trump win pressures Asian currencies

Nov 11, 2024 11:24 AM IST

The rupee fell to an all-time low of 84.3875 in early trading, going below its previous all-time low of 84.38 on Friday

The rupee weakened to a record low on Monday, November 11, 2024 after worries regarding Donald Trump's victory in the US presidential elections pressured Asian currencies and also triggered outflows from the Indian stock market, according to a Reuters report.

A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu.(Reuters)
A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu.(Reuters)

Also Read: Singapore Airlines to invest 3,194.5 crore more into Air India after Vistara merger for 25.1% stake

The rupee fell to 84.3875 in early trading, going below its previous all-time low of 84.38 on Friday.

A likely intervention from the Reserve Bank of India (RBI) kept it from falling further, the report cited traders as saying.

However, a Bloomberg report said that the RBI was ready to let the rupee weaken in tandem with the Chinese yuan because of Donald Trump’s win creating fears of higher US tariffs.

Also Read: Here's what happens to Club Vistara, co-branded credit cards, and CV Points after Air India-Vistara merger

This is because a depreciating Chinese yuan will make Chinese goods cheaper and further increase India’s trade deficit.

Asian currencies were however, mostly 0.1% to 0.4% weaker while the dollar index didn't change too much at 105, being close to a four-month high seen last week because of Trump's win, according to the Reuters report.

On top of this, state-run banks were also offering dollars on Monday, likely on the RBI's behalf, according to the report. RBI interventions led to a decline in India's foreign exchange reserves to a 2-month low of $682.13 billion as of Nov. 1.

Also Read: Nestle, PepsiCo sell substandard products in low-income countries like India, claims report

Stay updated with the...
See more
Stay updated with the latest Business News on Petrol Price, Gold Rate, Income Tax Calculator along with Breaking News Events and Latest News Updates on Hindustan Times.
SHARE THIS ARTICLE ON
SHARE
Story Saved
Live Score
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Wednesday, December 11, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On