Indian rupee fell to 9 paise in the early trade on January 8 due to strong dollar index and rise in oil prices, experts said. Additionally, outflows from equities and lower GDP forecast by Indian government also put pressure on the local currency.
At 10:30 AM, Indian rupee was trading at 85.83 against the US dollar, as compared to 85.82 at open and 85.72 at previous close against the greenback.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher at 108.63, from 108.54 on January 7.
India’s growth is set to dip to 6.4 percent in FY25, its lowest level in four years, pulled down by a likely decline in manufacturing and investment growth, according to preliminary data released on January 7.
The first advance estimates released by the government showed that growth is likely to settle below the 7 percent mark for the first time in four years.
Although the economy had performed well in the first quarter of FY25, recording a 6.7 percent increase, growth slumped in the second quarter, declining to a near two-year low of 5.4 percent.
Growth averaged 6 percent in the first half and is likely to average 6.8 percent in the second, as per the latest numbers.
Meanwhile, Benchmark indices Nifty and Sensex opened the trading session on a weak note on January 8, weighed down by a sharp fall in IT and metal stocks. Pharma and energy stocks traded in the positive, offsetting the fall to some extent.
At about 10:30 am, the Sensex was down 430.12 points or 0.55 percent at 77,805.00, and the Nifty was down 107.25 points or 0.45 percent at 23,600.65.
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