Indian Rupee Declines to Record Low on Bullish Dollar Outlook
The Indian rupee fell to an all-time low of 84.2950 on Thursday, surpassing the previous record of 84.28 set on Wednesday. This decline is attributed to rising expectations that U.S. economic policies under Donald Trump's leadership will strengthen the dollar in the coming months. Analysts highlight that Trump's proposed tax cuts and deregulation policies are anticipated to spur U.S. economic growth, leading investors to favor the dollar over other currencies, while the potential imposition of tariffs could put downward pressure on the euro and Asian currencies. Persistent foreign outflows from Indian equity markets have further strained the rupee, with over $1.5 billion withdrawn in November alone, adding to $11 billion in outflows from the previous month. On the same day, key Indian equity indices, the BSE Sensex and Nifty 50, reflected the market's broader struggle, both dropping approximately 0.5%. The combination of bullish sentiment toward the dollar and significant ...