INR Hits Record Low Of 84.37 Against Dollar Amid Weak Market Sentiment

The Indian rupee continued its downward trend on Thursday, slipping by 6 paise to settle at a new lifetime low of 84.37 (provisional) against the US dollar.

This decline comes as domestic equity markets faced sharp losses, dampening investor sentiment amid sustained foreign fund outflows, as reported by Business Standards.

Indian shares took a significant hit, with the benchmark S&P BSE Sensex dropping 836.34 points, or 1.04%, to close at 79,541.79. Meanwhile, the NSE Nifty index fell by 284.70 points, or 1.16%, ending the day at 24,199.3. The downturn in equities reflects investor concerns over potential shifts in global growth and interest rates following Donald Trump's re-election as U.S. President.

Adding to market jitters, central bank decisions on interest rates from both the Bank of England and the U.S. Federal Reserve are expected soon, with rate cuts of 25 basis points anticipated from both. Investors are also awaiting comments from Fed Chair Jerome Powell, who is likely to address policy outlook and market implications post-election.

The combination of weak domestic equities, Trump's second-term victory, and expected interest rate cuts in the US and UK have contributed to volatility in Indian markets and placed additional pressure on the rupee. Investors will be closely monitoring further developments for cues on the rupee's trajectory and the broader economic outlook.