On Monday, the Indian rupee hit an all-time low at the start of trading, amid concerns that the risk aversion triggered by fears of a US recession might result in foreign capital outflows.
The rupee commenced trading at 83.78 against the US dollar, a decline from its previous close at 83.75, and dipped below the historic low of 83.7525 reached on Friday.
The downturn in US and Asian stock markets, following a subpar jobs report, heightened fears of capital outflows from India and other emerging markets. This significant downturn could lead the Reserve Bank of India to allow the USD/INR rate to rise to 83.90, according to a trader at a public sector bank.
