Rupee falls 16 paise to USD . reached a low of 77.60 against
The rupee on Wednesday closed 16 paise lower at its new lifetime low of 77.60 against the US dollar amid unabated foreign fund outflows and a strong greenback in overseas markets. At the interbank forex market, the rupee opened at 77.57 and later hit the day’s low of 77.61 as the dollar rose in global markets following sharp remarks by US Federal Reserve chief Jerome Powell.
Crude oil prices also rose by more than 1 per cent, which affected the rupee. The local unit finally ended at its all-time low of 77.60, showing a fall of 16 paise over its previous close of 77.44.
Jatin Trivedi, VP Research Analyst, LKP Securities, said, “The dollar index took support near 103.50 and capital markets witnessed profit-booking from higher levels, leading to weakness in the rupee.” The US Fed chief insisted that the central bank would raise interest rates as much as possible to prevent a spike in inflation that threatens the very foundations of the economy.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.3 per cent higher at 103.59.
Global oil benchmark Brent crude futures rose 1 per cent to $113 a barrel.
Meanwhile, the 30-share BSE Sensex closed 109.94 points or 0.20 per cent lower at 54,208.53. During the day, it touched a high of 54,786 and a low of 54,130.89.
The broader NSE Nifty ended 19 points or 0.12 per cent lower at 16,240.30. Foreign institutional investors remained net sellers in the capital market on Tuesday as they sold shares worth Rs 2,192.44 crore, according to stock exchange data.
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