Rupee hits all-time low: Currency breaches 89/$ mark for first time; steepest drop in over 3 months

The rupee logged its steepest single-day drop in more than three months on Friday, breaching the 89-per-dollar mark for the first time amid weak sentiment across domestic and global equity markets. The currency fell 78 paise intraday to 89.46 against the US dollar.At the interbank foreign exchange market, the rupee opened at 88.67 before touching a record intraday low of 89.50. It later traded at 89.40 against the greenback. On Thursday, the domestic currency had closed at 88.68, down 20 paise.The previous record intraday low of 88.85 was hit on September 30, while the lowest closing level stood at 88.81 on October 14. The sharpest fall prior to Friday was recorded on July 30, when the rupee declined 89 paise in a single session, according to PTI.Global cues remained weak, with the dollar index edging up 0.04% to 100.05, signalling relative strength in the US currency. Brent crude traded 1.21% lower at $62.64 per barrel in futures trade.Domestic equities also mirrored the risk-off mood. The Sensex was down 360.40 points, or 0.42%, at 85,272.28, while the Nifty slipped 111.05 points, or 0.41%, to 26,081.10 during trading hours.Foreign institutional investors bought equities worth Rs 283.65 crore on Thursday, according to exchange data.Government data showed growth in the country’s eight core infrastructure sectors remained flat year-on-year in October. While output of petroleum refinery products, fertiliser and steel expanded, coal and electricity production contracted. The eight sectors had grown 3.3% in September and 3.8% in October 2024.