Rupee Likely To Hit New Lifetime Low At Open On Chinese Yuan-Led Slide In Asia
Rupee Likely To Hit New Lifetime Low At Open On Chinese Yuan-Led Slide In Asia . (MENAFN - Live Mint)  By Nimesh Vora  MUMBAI, Dec 3 (Reuters) - The Indian rupee will likely hit a fresh all-time low at the open on Tuesday, following the offshore Chinese yuan's dip past a key ...
América - MenaFN
(MENAFN- Live Mint) By Nimesh Vora

MUMBAI, Dec 3 (Reuters) - The Indian rupee will likely hit a fresh all-time low at the open on Tuesday, following the offshore Chinese yuan's dip past a key level to the lowest in over a year.

The 1-month non-deliverable forward indicated that the rupee would open at near 84.78 to the U.S. dollar, dropping past the 84.7050 lifetime high hit on Monday.

The rupee on Monday had its worst day in six months, bogged down by India's disappointing data.

India's September quarter GDP slumped to a multi-quarter low, which meant that the central would cut rates sooner than previously expected and that foreign equity outflows were likely to persist, undermining the rupee.

"There were fundamental factors in play (for rupee's decline) yesterday. When that happens, it usually means a period of prolonged weakness," a currency trader at a bank said.

"The Reserve Bank of India will pull out all stops to make sure that the decline is not disruptive," he said, adding that the central bank sold dollars to help out the rupee on Monday.

YUAN EXTENDS LOSSES

The offshore Chinese yuan slipped past the 7.30 level to the U.S. dollar for the first time in over a year on Tuesday, hitting a low of 7.3148. Other Asian currencies also dropped alongside the Chinese currency.

The risk of U.S. tariffs following Donald Trump's election victory has prompted investors to dump the yuan. Since the U.S. election results, the currency has declined by nearly 3%.

The dollar, meanwhile, has staged a broad rally. On Monday, the dollar benefited from data that indicated that U.S. manufacturing activity contracted at a more moderate pace in November compared to the month prior.

KEY INDICATORS:

** One-month non-deliverable rupee forward at 84.92; onshore one-month forward premium at 14 paise

** Dollar index up at 106.48

** Brent crude futures at $71.7 per barrel

** Ten-year U.S. note yield at 4.19%

** As per NSDL data, foreign investors sold a net $117.2mln worth of Indian shares on Nov. 29

** NSDL data shows foreign investors sold a net $57.3mln worth of Indian bonds on Nov. 29

(Reporting by Nimesh Vora; Editing by Abinaya Vijayaraghavan)
Jordania
https://menafn.com/images/Menafn_SmallLogo.jpg
https://menafn.com/1108948915/Rupee-Likely-To-Hit-New-Lifetime-Low-At-Open-On-Chinese-Yuan-Led-Slide-In-Asia
2024-12-02
rss
(MENAFN - Live Mint)  By Nimesh Vora  MUMBAI, Dec 3 (Reuters) - The Indian rupee will likely hit a fresh all-time low at the open on Tuesday, following the offshore Chinese yuan's dip past a key ...
Rupee Likely To Hit New Lifetime Low At Open On Chinese Yuan-Led Slide In Asia