Rupee Breaches 78-Mark Against USD For First Time Ever

Rupee vs Dollar: The rupee fell to 78.29 against the USD on Monday. It has breached the 78-mark for the first time in India.

Rupee vs Dollar | New Delhi: Indian rupee, on Monday, breached the Rs 78-mark against the USD in early trade. Owing to persistent sell-off by foreign investors, the equity markets have turned weak. Sensex slipped 1,400 points and Nifty was trading at 15,800. According to media reports, the rupee opened at 78.20 at interbank foreign exchange and then slipped to Rs 78.29 against the USD.

“Weak global sentiments and weak Asian and European currencies have allowed the rupee to open below 78 after RBI ensured it did not cross 77.70. Have to watch the RBI as to how it behaves in the next few days,” said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

India will reveal its inflation figures today. On Friday, the US issued its inflation figures for May 2022. According to the numbers, US inflation was at the highest point in the last four decades at 8.6 per cent. The Federal Reserve will take the decision on the interest rates this week.

India’s central bank, the Reserve Bank of India (RBI), announced a repo rate hike of 50 basis points to contain the inflation.

Foreign investors continue to exit

Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 3,973.95 crore, as per stock exchange data.

(With agency inputs)