Rupee hits record low ahead of US election results 2024, RBI may step in

Rupee at record low: rupee fell 14 paise to an all-time low of 84.23 against US dollar in early tre on Wednesday, dragged down by persistent foreign fund outflows and strength of American currency in overseas market.

Forex trers said with US election underway, markets are alrey showing signs of volatility -- a trend likely to calm once a clear winner emerges in this tightly contested race.

Moreover, US Fed is expected to anunce a rate cut in a meeting scheduled later this week, with furr easing of up to 100 basis points projected for 2025.

At interbank foreign exchange, rupee opened at an all-time low of 84.23 against greenback, registering a fall of 14 paise over its previous close.

On Tuesday, rupee settled 2 paise higher at 84.09 against US dollar.

Meanwhile, dollar index, which gauges greenback's strength against a basket of six currencies, was tring 1.64 per cent higher at 105.11.

" dollar index rose after Trump went up in US elections initial results and was also leing in Senate and House," said Anil Kumar Bhansali, He of Treasury and Executive Director at Finrex Treasury visors LLP.

Brent crude, global oil benchmark, fell 0.98 per cent to USD 74.79 per barrel in futures tre.

"All will depend on RBI as to where it will allow rupee to open and how it will move depending on intra-day election results. Wide range for rupee would be 84.00 to 84.35," Bhansali said.

On domestic equity market front, Sensex vanced 390.93 points, or 0.49 per cent, to 79,867.56 points. Nifty jumped 135.60 points, or 0.56 per cent, to 24,348.90 points.

Foreign institutional investors (FIIs) were net sellers in capital markets on Tuesday, as y offloed shares worth Rs 2,569.41 crore, according to exchange data.