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

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

Published on: Nov 11, 2024, 11:24:10 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

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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)

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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.

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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.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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