On November 8, 2024, the Indian Rupee (INR) hit a fresh all-time low of 84.13 against the US Dollar, reflecting increasing pressure from persistent foreign institutional investor (FII) outflows and broader global economic concerns. This significant dip surpasses the earlier low of 84.11 recorded in early November, marking a steep decline for the currency in the face of both domestic and international challenges.
Several factors are driving this depreciation. A major contributor is the sustained selling by FIIs, which have been pulling capital from Indian equities. On November 6 alone, FIIs were net sellers to the tune of over ₹4,300 crore, a trend that has been exacerbated by global shifts, particularly towards China, where markets are showing more attractive prospects. This withdrawal has undermined investor confidence, pushing the rupee to weaker levels.
The ongoing uncertainty in the global economy is also weighing heavily on the INR. Rising concerns about the economic outlook in the US, coupled with fears of a recession, have sparked global market sell-offs. While the US Dollar has been volatile, the relative strength of the greenback combined with rising oil prices has added further pressure on the rupee. Crude oil prices, despite recovery in some regions, remain a risk factor for the Indian economy, given the country’s import dependence.
The Reserve Bank of India (RBI) has stepped in to manage the volatility. Reports suggest that state-run banks have been actively selling dollars to help stabilize the currency and mitigate the extent of the depreciation. Despite these interventions, the rupee remains vulnerable, and analysts predict it may continue to fluctuate within a broad range of 83.55–84.70 against the dollar in the near term.
The continued outflows and volatility in domestic equity markets, compounded by global uncertainties, are expected to keep the rupee under pressure, and much will depend on how both the RBI and the broader market navigate these turbulent conditions in the coming weeks. Investors are advised to monitor the situation closely as the Indian currency faces a precarious road ahead.
