The rupee declined to its weakest level on record on Monday, hurt by concerns about economic growth slowing to its lowest in seven quarters alongside strong dollar bids in the non-deliverable forwards market.
The rupee hit a low of 84.7050 during the session before ending at 84.6950.
The currency weakened 0.2% on the day, its worst single day fall since June 4 Lok Sabha election results.
The rupee has hit a string of record lows over the past two months as a disappointing corporate earnings for the June-September quarter spurred outflows from local equities and Donald Trump’s victory in US elections sparked a wave of dollar strength.
Data released after Friday’s trading session had showed that economy grew by 5.4% year-on-year in the July-Sept quarter, markedly lower than expectations, which is likely to add pressure on the Reserve Bank of India (RBI) for interest rate cuts, which could further weigh on the rupee.
“If the INR is broadly well-behaved and growth is weak, the RBI should be on track to cut rates once the supply shocks fade,” Rahul Bajoria, head of India and ASEAN economic research at BofA Securities, said in a note. reuters
