By laksh5382 
Rupee The US dollar fell 2 paise to an all-time low of 84.87 against the US dollar in early trade on Wednesday amid rising expectations of a change in the Reserve Bank’s monetary policy stance following the appointment of Sanjay Malhotra as the new RBI Governor.
Forex traders said the market now expects a rate cut in the upcoming monetary policy in February. While a soft trend in the domestic market and overall strength of the US dollar index put pressure on the rupee.
At the interbank foreign exchange, the rupee opened at 84.87, an all-time low against the greenback, registering a decline of 2 paise over its previous close.
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On Tuesday, the rupee closed at 84.85 against the US dollar with a rise of one paise.
Anil Kumar Bhansali, head of treasury and executive director of Finrex, said the market expects the new RBI governor to take a dovish stance in his approach to the finance ministry and may cut rates as early as February 2025, after which the Indian rupee will fall to its lowest. Open at level. Treasury Advisors LLP.
The government on Monday appointed Revenue Secretary Sanjay Malhotra as the 26th Governor of the Reserve Bank of India.
Malhotra is taking charge at a time when the Indian economy is facing the twin challenge of slow growth rate and high inflation.
While Shaktikanta Das kept benchmark interest rates unchanged for almost two years to control inflation, the incoming governor is said to be a team player who believes that prices cannot be managed by the Reserve Bank of India (RBI) alone. Can and for this work, government is also needed to help.
Bhansali said the rupee was protected by the RBI at 84.86, but it opened with a decline and is expected to remain in the range of 84.77 to 84.97 during the day.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.07 percent lower at 106.32.
Global oil benchmark Brent crude rose 0.57 percent to $72.61 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex was trading 39.22 points or 0.05 per cent lower at 81,470.83. Nifty fell 5.15 points or 0.02 percent to 24,604.90 points.
Foreign Institutional Investor (FII) There were net buyers in the capital market on Tuesday as they bought shares worth ₹1,285.96 crore, according to exchange data.