Rupee weakens to 79.57/$. at a record low level of
The rupee weakened sharply to 79.58 against the dollar, a new record low, as the US currency rose to a nearly two-decade high, driven by safety bets on fears of a global recession.
Bloomberg quoted the rupee against the greenback at 79.57, while PTI reported that the currency was last changing at 79.58 per dollar.
At the interbank forex, the rupee opened at 79.55 against the US dollar and closed at 79.58, a decline of 13 paise over its previous close.
In early trade, the local currency saw a high of 79.55 and a low of 79.62 against the US Dollar.
That 79.62 per dollar rate is another intra-day all-time low, marking another in a series of lifetime weak rates in recent months.
After settlement on Monday, the currency had closed 19 paise lower at 79.45 against the US dollar.
now Rupee is just a hope, jump and jump away from a key psychological level of 80 per dollar,
“We could very soon see 80 levels on USD/INR. The only force stopping it from falling is RBI. But with most other Asian currencies falling, we should get there sooner,” said a senior trader at Private Bank. told Reuters.
Traders expect the Reserve Bank of India (RBI) to sell dollars through state-run banks, as has been the case in recent months.
Asian currencies were trading weak against the dollar.
Capital migration by almost any other currency and from assets in the safe-haven greenback was evident as the dollar index, which tracks the currency against a basket of six peers, rose to 108.47 the highest since October 2002. Gone.
“Global markets are dominated by risk-off sentiment,” Yuting Shao, macro strategist at State Street Global Markets, told Reuters.
“The dollar is the go-to international reserve currency. So when there is a risk of recession or volatility, the greenback is the currency that people consider safest,” said the macro strategist.
Reuters reported that investors’ attention would be on macro data, including India’s Retail Inflation Reading Consumer price index from the United States this week, as well as Wednesday.
The rise in inflation will put central banks on the path of aggressive rate hikes.
meanwhile, Reserve Bank of India (RBI) unveiled a payment mechanism for international trade settlement in RupeeWith prior approval for banks. RBI’s move comes as the Indian rupee touched an all-time low amid continued foreign portfolio outflows from domestic stock markets and a broadly strong greenback.