Topic 5: RUPEE: HISTORICAL LOWS

October 2024 was marked by significant depreciation of the Indian rupee against the U.S. dollar, driven by FII outflows, geopolitical tensions, rising crude oil prices, and global economic factors. On October 1, it was trading around ₹83.48 to the U.S. dollar. The rupee hit a historic low of ₹84.077 on October 18, driven by substantial outflows from equities, where FIIs sold over ₹74,800 crore worth of Indian stocks in just 11 sessions leading up to this point. By October 21, it managed a slight recovery to ₹84.06, but overall sentiment remained bearish. As RBI intervened in the forex market to prevent excessive volatility by selling dollars to stabilize the rupee temporarily. Moving forward, continued monitoring of global economic conditions and domestic policy responses will be crucial for assessing future movements of the rupee.



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