As early results from the U.S. presidential election strengthened the dollar and pinned back Asian currencies, the Indian rupee fell to its lowest level ever on Wednesday money.
In relation to the US dollar, the rupee dropped to 84.1725. 0.07% lower than its last close of 84.1075. The most recent currency quote was 84.17. The dollar index reached a four-month high of 104.9, up almost 1.5%, while
As early trends indicated an edge, Asian currencies fell by as much as 1.2%. for Donald Trump, the Republican candidate, raising interest in so-called “Trump makes a trade.”
Additionally, U.S. Treasury yields increased, with the 10-year yield rising 15 basis points 4.44%, or points According to media projections, Trump is anticipated to have obtained 198 electoral collage votes, with Kamala Harris leading with 112 votes. Battleground state results have not yet been announced.
A spike in the dollar index and weakness in Asian peers amid U.S. election updates caused the Indian rupee to fall in the non-deliverable forward market.
The quoted price for the one-month USD/INR non-deliverable forward was 84.28/84.32. The rupee would open at about 84.18 if these levels hold, up from 84.1075 on Tuesday and above its all-time low of 84.1275.
Amid U.S. election updates that showed Republican candidate Donald Trump ahead of Democratic candidate Kamala Harris, the dollar appreciated generally. The Thai baht, Korean won, and onshore Chinese yuan all saw declines of 0.5% to 0.8%, while the dollar index increased by 0.84% to 104.24.
Analysts ranked these three Asian currencies as some of the most susceptible to Trump’s election victory.
“The dollar is performing well, and U.S. equity futures and yields are rising. Based on the outcome of the U.S. election thus far, traders are entering Trump trades, according to a hedge fund portfolio manager based in Singapore.
At 4.38%, the yield on the 10-year U.S. Treasury was up 10 basis points. Futures for US stocks were up almost 1%. The odds of a Trump victory had increased to two out of three in the betting market.
On November 4, 2024, the value of the Indian rupee dropped to its lowest point ever, closing at 84.115 versus the US dollar. High U.S. bond yields and ongoing withdrawals from Indian stocks have contributed to this decline by strengthening the dollar.
A declining dollar has provided some support for regional currencies, but the rupee has continued to face pressure as a result of foreign investors pulling out of Indian markets. Significant drops were also seen in Indian stock indices, such as the Sensex and Nifty 50, which were further hampered by lower-than-expected earnings reports.
Significant outflows continue despite the Reserve Bank of India’s (RBI) sporadic interventions to stabilize the rupee due to a mixed global economic outlook and general market uncertainty surrounding the outcome of the U.S. presidential election. Since interest rate increases have had a significant impact on international currency markets, investors are also anticipating the U.S. Federal Reserve’s next policy decision.
