Rupee Hits All-Time Low At 84.08 Against US Doller; Gold Prices Soar To Record ₹82,400 Amid Festive Demand

Mumbai: In a new milestone, the Rupee touched an all-time low, closing at 84.08 per dollar on Wednesday, adding weight to an already surging gold market. As the Rupee slid, gold prices rose sharply by Rs 1000, with 89.8% purity gold reaching an unprecedented Rs 82,400 per 10 grams in Delhi.

According to the All India Sarafa Association, strong festive demand and rising geopolitical uncertainties contributed to this record-setting climb. Jewellers are buying aggressively ahead of Diwali, anticipating more upward momentum for the yellow metal, which is now priced at record levels: Rs 82,400 for 99.9% purity and Rs 82,000 for 99.5%.

The global backdrop also supports this increase, with financial markets unsettled ahead of the U.S. presidential election and escalating geopolitical frictions. The Rupee's sharp drop comes as foreign funds continue to exit domestic equities, while demand for the Dollar remains high among importers.

Reserve Bank of India interventions—selling Dollars to cushion the rupee—have helped keep it from sliding further. However, the weakness in the Rupee has further boosted the appeal of gold as a secure asset, encouraging even more local buying. Despite a softening Dollar index at 104.13, the Rupee has struggled under relentless demand for the Dollar. Lower crude oil prices offer slight relief to India’s import-heavy economy, but analysts expect the Rupee to stay under pressure, with the RBI likely to intervene if further declines occur.