On Wednesday, the Indian rupee stayed close to its record low, influenced by weaker local stocks and dollar sales by state-run banks. At 9:15 am UAE time, the rupee was trading at 22.998 against the UAE dirham (84.4050 against the US dollar), nearly unchanged from the previous close of 22.995. On Tuesday, it reached a record low of 23 against the dirham.
Most Asian currencies gained, with China’s yuan up 0.1%, supported by stronger-than-expected central bank guidance. Meanwhile, the dollar index was near 106, fueled by high US bond yields due to anticipated policies of lower taxes and trade tariffs.
The rupee has hit record lows over the past five trading sessions, impacted by a strong dollar and continued foreign outflows from Indian equities. Indian markets have seen $3 billion in foreign outflows in November, adding to the $11 billion in October as stocks fell over 9% since their September peak.
Despite these pressures, regular central bank actions have helped ease the rupee’s decline. So far, the rupee is down 0.4% in November, still faring better than other regional currencies.
Investors are now looking to US consumer inflation data, which could signal the Federal Reserve’s future rate policy.
