MUMBAI (Reuters) – The Indian rupee declined to its weakest level on record on Friday as a resurgent dollar and sustained portfolio outflows pressured the currency, while heightened geopolitical risks also dampened risk appetite.
The rupee hit a low of 84.4975 in early trading, eclipsing its previous all-time low of 84.4925 hit on Thursday.
Likely intervention by the Reserve Bank of India helped limit the rupee’s losses, with traders citing “heavy offers,” from state-run banks near 84.50 levels, on behalf of the central bank.
The dollar index climbed to a 13-month peak on Thursday and was marginally lower in Asia trading, while most regional currencies logged mild gains.
Foreign investors have net pulled out over $4 billion from local stocks and bonds in November so far, compounding the pressure on the local currency.
(Reporting by Jaspreet Kalra; Editing by Sonia Cheema)
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