The rupee slumped to a two-month low of 54.50 in intraday trade as the uncertainty over US Presidential race left scurried foreign investors taking their dollars back to the safe haven economy.
The local unit slumped sharply in the opening trade to 54.11 (previous close: 53.81) as global risks persisted in the short-term.
The US payroll data released late on Friday showed that the country added more jobs in October and revised upwards its numbers for August and September. An improving job market helped the dollar to appreciate against major global currencies.
The Indian markets, which had seen highest yearly inflow from foreign institutional investors in October, will be anticipating more such bounties from overseas.
The US presidential elections, stated to be held tomorrow and the uncertainty associated with it, is likely to keep up the pressure on the Indian unit.
The rupee had appreciated nearly 8 per cent in September after the government announced measures that cheered the markets. However, much needs to be done to translate the announcements into actions.
On Sunday, the ruling Congress party’s top brass joined hands at a public rally to allay apprehensions that the ‘reform’ measures will have adverse impact for the common man and vowed to stay course on its decisions.
