Updated 14:27 IST, August 2nd 2024
Rupee hits record low amid global market sell-off, geopolitical concerns
The rupee declined to an all-time low of 83.7475, marginally surpassing its previous record low of 83.7450 set on Wednesday.

The rupee fell to a record low on Friday, as local equities followed a global market sell-off driven by concerns over US economic growth and escalating geopolitical tensions. The rupee declined to an all-time low of 83.7475, marginally surpassing its previous record low of 83.7450 set on Wednesday. As of 1:55 pm, the currency was quoted at 83.74.
Market participants indicated that the Reserve Bank of India (RBI) likely intervened in the forex market, selling US dollars through state-run banks to prevent a sharper decline in the rupee's value. Despite the dollar index being slightly lower at 104.2, most Asian currencies showed gains between 0.1 per cent to 1.5 per cent.
In the equity markets, benchmarks saw sharp declines mirroring global losses. The drop followed US economic data revealing a fall in manufacturing activity to an eight-month low in July. The Sensex tumbled by up to 782 points, while the Nifty 50 index briefly dipped below the crucial 24,800 support level.
The Sensex had dropped 630 points, or 0.8 per cent, to 81,239, and the Nifty 50 index fell 204 points, or 0.82 per cent, to 24,806. The sell-off was broad-based, with all major sector indices on the National Stock Exchange trading lower except for FMCG shares. The Nifty Metal index led the decline with a 2 per cent drop, followed by the Nifty Realty, Oil & Gas, PSU Bank, Private Bank, IT, and Auto indices, which fell between 1 per cent and 2 per cent.
On the upside, ITC shares rose 0.8 per cent to Rs 498 after reporting a profit of Rs 4,917 crore for the quarter ending June 30, up slightly from Rs 4,902 crore a year earlier. However, the result fell short of the average analyst estimate of Rs 5,162 crore. Other notable gainers included Hindustan Unilever, Apollo Hospitals, Nestle India, Tata Consumer Products, and Dr. Reddy's Laboratories.
The overall market breadth was negative, with 1,999 shares declining and 765 shares advancing on the BSE.
(With Reuters inputs)
Published 14:27 IST, August 2nd 2024