Rupee closes at all-time low of 81.67 against US dollar
The rupee plunged 58 paise to close at an all-time low of 81.67 (provisional) against the US dollar on Monday (September 26) as the strengthening of the American currency overseas and risk-averse sentiment among investors weighed on the local unit.
Moreover, escalation of geopolitical risks due to the conflict in Ukraine, a negative trend in domestic equities and significant foreign fund outflows sapped investor appetite, forex traders said.
At the interbank foreign exchange market, the local currency opened at 81.47, then fell further to close at an all-time low of 81.67 against the American currency, registering a decline of 58 paise over its previous close.
Also Read: Rupee falls 19 paise to close at lifetime low of 80.98 against US dollar
On Friday, the rupee slumped 30 paise to close at 81.09, its previous record low. This is the fourth consecutive session of loss for the domestic unit, during which it has lost 193 paise against the American currency.
“Another day of large gains for the dollar versus the rupee as it fell for the fourth day in a trot amid risk-averse sentiments and unprecedented strength in the greenback following Fed tightening and recession worries,” said Dilip Parmar, Research Analyst, HDFC Securities.
Spot USD-INR may head towards 82 as strength in the dollar index continues with surging bond yields, Parmar said, adding that in the near-term, spot USD-INR is having resistance at around 82 and support at 81.05.
Also Read: Rupee slips below 81-mark against US dollar for first time in early trade
Meanwhile, the dollar index, which gauges the greenbacks strength against a basket of six currencies, advanced 0.46 per cent to 113.71.
According to experts, focus will now shift to RBI’s meeting this week, with its decision due on Friday. The 38th meeting of the Monetary Policy Committee, constituted under the Reserve Bank of India Act, will be held during September 28 -30.
Global oil benchmark Brent crude futures fell 0.70 per cent to USD 85.55 per barrel.
Also Read: British pound sterling plunges to a record low against dollar
On the domestic equity market front, the 30-share BSE Sensex dropped 953.70 points or 1.64 per cent to end at 57,145.22 while the broader NSE Nifty fell 311.05 points or 1.8 per cent to 17,016.30.
Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth ₹2,899.68 crore, as per exchange data. Meanwhile, the country’s forex reserves declined USD 5.219 billion to USD 545.652 billion for the week ended September 16.
(With inputs from agencies)
