Rupee Hits Historic Low: Closes at 85.87 Against US Dollar

• Record Decline: The Indian rupee fell by 13 paise, reaching a new all-time low of 85.87 against the US dollar on Wednesday.

• Market Opening: At the interbank foreign exchange, the rupee opened at 85.82 and touched an intra-day low of 85.89 before settling at 85.87.

• Contributing Factors: Analysts attribute the rupee's depreciation to rising crude oil prices, a strengthening US dollar, and sustained foreign fund outflows.

• Global Influences: The dollar index, measuring the greenback against six major currencies, rose by 0.35% to 108.76, reflecting the dollar's broad strength.

• Oil Market Impact: Brent crude, the global oil benchmark, increased by 0.90% to USD 77.74 per barrel, adding pressure on the rupee.

• Equity Market Performance: The BSE Sensex declined by 50.62 points to 78,148.49, while the Nifty fell by 18.95 points to 23,688.95, indicating bearish market sentiment.

• Foreign Investment Trends: Foreign institutional investors sold equities worth ₹1,491.46 crore on a net basis, contributing to the rupee's decline.

• Economic Growth Concerns: The government's lower economic growth projection has further dampened investor confidence, impacting the rupee's value.

• Future Outlook: Economists suggest that without intervention from the Reserve Bank of India, the rupee may face further depreciation in the near term.