Rupee Falls to All-time Low of 84.37 Against US Dollar in Early Trade

Mumbai: rupee fell 5 paise to an all-time low of 84.37 against US dollar in early tre on Friday, weighed down by persistent foreign fund outflows and a muted trend in domestic equities.

Forex trers said US Federal Reserve's recent decision to cut interest rates signals a shift in global financial landscape. Moreover, with Donald Trump 's tax and tre policies influencing global markets, volatility could re-enter rupee's trajectory.

At interbank foreign exchange, rupee opened at 84.32 against greenback, n it fell furr to an all-time low of 84.37, registering a rise of 5 paise over its previous close.

On Thursday, rupee slipped 1 paisa to close at a fresh lifetime low of 84.32 against US dollar.

" spotlight will w be on Reserve Bank of India ( RBI ) and how effectively it navigates this shifting currency landscape. In such a dynamic environment, only those who apt swiftly will thrive in market ahe," CR Forex visors Managing Director Amit Pabari said.

In its latest monetary policy anuncement, US Fed reduced its benchmark rate by 0.25 basis points to a target range of 4.5 per cent-4.75 per cent.

In its accompanying statement, Fed opted a neutral-to-dovish tone, ackwledging balanced risks in inflation and employment.

Meanwhile, dollar index, which gauges greenback's strength against a basket of six currencies, was tring marginally higher by 0.02 per cent at 104.53.

Brent crude, global oil benchmark, fell 0.65 per cent to USD 75.14 per barrel in futures tre.

"In this dynamic environment, volatility in USD/INR pair is expected, with RBI likely maintaining a range between 83.80 and 84.50. If dollar's momentum stalls amid future Fed rate cuts and weakening investor confidence, rupee could grually strengn toward lower end of this range," Pabari said.

On domestic equity market front, Sensex declined 14.23 points, or 0.02 per cent, to 79,527.56 points. Nifty fell 15.45 points, or 0.06 per cent, to 24,183.90 points.

Foreign Institutional Investors (FIIs) were net sellers in capital markets on Thursday, as y offloed shares worth Rs 4,888.77 crore, according to exchange data.