Rupee Hits All-Time Low Against USD Twice In Two Days; What’s Spooking Our Currency? Know Here

Rupee vs Dollar: The rupee has hit the lowest level twice in the last two days. On Friday, the rupee fell to an all-time low of 77.82 against the USD.

Rupee vs Dollar | New Delhi: Indian rupee fell to an all-time low of 77.72 against the USD in early trade on Friday. At the interbank foreign exchange, the rupee opened on a weak note at 77.81 and hit the low of 77.82 soon after. This is the second time in two days that the currency has hit its lowest. Yesterday, INR hit 77.81, the previous all-time low, to close at 77.74 per USD.

The rupee opened weaker against the dollar this Friday tracking the overnight strength of the greenback, said Sriram Iyer, Senior Research Analyst at Reliance Securities. Asian and emerging market peers have started mixed, while Asian equity remained under pressure and could weigh on sentiments, Iyer noted.

The commodity pricing was in line with the sell-off in the Indian share markets. Sensex was down by over 700 points and Nifty50 fell below 16,300. IT and Metal stocks were the worst-performing indices.

What’s spooking the rupee?

1. FII sell-off: Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 1,512.64 crore, as per stock exchange data.
2. Dear Money: After RBI and the Fed, European Central Board (ECB) has also decided to hike the interest rates to control the inflation. This has led to a weakening of global sentiments.
3. US Inflation data: The US will reveal its inflation data today. This is expected to be followed by further rate hikes by the Fed.
4. Oil prices still high: The oil prices have remained elevated at $122.06 per barrel, increasing the stress on the markets.

(With agency inputs)