The rupee continues to weaken against the dollar, hitting a record low of 85.26 due to elevated dollar index levels and cautious foreign institutional investors. The currency struggles with recovery amid global economic uncertainties and domestic macroeconomic challenges, potentially facing further pressure despite RBI interventions.
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The rupee hit a lifetime low of 85.84 against the dollar, closing at 85.83, despite RBI intervention. The drop was influenced by a strong dollar, poor capital flows, and weak equity markets. Foreign investors withdrew $1.1 billion in January, and broader economic concerns, including rising US bond yields and HMPV virus fears, added to the pressure.