- Indian Rupee (INR) falls to an all-time low
- Outflows stemmed from selling of domestic equities
- US Dollar (USD) is falling versus major peers
- US elections are tomorrow
The US Dollar Indian Rupee (USD/INR) exchange rate is rising at the start of the week after losses last week. The pair fell 0.02% in the previous week, settling on Friday at 84.08. Today, at 18:00 UTC, USD/INR is up +0.08% at 84.14 and traded in a range of 84.04 to 84.18.
The Indian rupee fell to an all-time low on Monday amid ongoing outflows from domestic equities, which overshadowed the weaker U.S. dollar.
The benchmark Indian equities, the Sensex and Nifty 50, both fell by more than 1% on the day, their worst single-day performance in a month.
The benchmarks are down 8% from their record highs reached in late September, hurt by foreign investors withdrawing after a lacklustre earning season.
Interventions by the Reserve Bank of India have helped the rupee avoid sharp declines despite ongoing pressure.
The US Dollar is rising against the Rupee but falling against its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies, is falling 0.43%, trading at 103.83 after a flat finish yesterday.
The US dollar is falling as traders seek positions for tomorrow’s US election. The USD has been a beneficiary of speculation that Republican candidate Donald Trump was more likely to win the presidential election, and those expectations have seen a pullback. A poll over the weekend showed Vice President Kamala Harris having gained in some polls, although they still show a tight race.
Kamana Harris has gained ground on election gambling sites and leads on Predict, while the Poly market continued to show Trump as the likely winner.
Trump’s policies are considered to be inflationary which could see the Federal Reserve cut interest rates more gradually and therefore boost the dollar.