In a reflection of global economic dynamics, the Indian rupee experienced a noteworthy depreciation, settling at a historic low of 83.34 against the US dollar. This decline of 6 paise is attributed to the resurgence of US Treasury yields, impacting Asian currencies. The rupee’s closing value marked a drop from its previous closure at 83.28.

The dollar index, gauging the strength of the US dollar against six major currencies, hovered just below the 106 mark. Simultaneously, the 10-year US Treasury yield stood at 4.64%, surpassing the week’s low of 4.48%.

During the trading session, the rupee touched an all-time low of 83.42 against the dollar. For the entire week, the local unit experienced a 0.2% decline, indicative of the prevailing economic challenges.

Analysts attribute the rupee’s weakened position to factors such as foreign capital outflows and an upward trajectory in crude oil prices. The cumulative impact of these influences contributed to the week’s decline and the rupee’s closing at a record low.

Abhilash Koikkara, the head of forex and rates at Nuvama Professional Clients Group, emphasized that while the rupee breached the longstanding support level of 83.30, a clearer outlook will emerge in the coming days, particularly around Wednesday or Thursday. If the rupee maintains levels around 83.40 in the upcoming week, it may signal a sustained shift towards a weaker range, Koikarra added.

In summary, the rupee’s latest depreciation underscores the intricate interplay of global economic factors, prompting market observers to closely monitor developments to gauge the trajectory of the Indian currency in the days ahead.

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