The rupee depreciated 44 paise and slipped below the 81-mark against the US dollar for the first time in early trade on Friday, weighed down by the strong american currency and risk-off sentiment among investors.<\/p>\n
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Forex traders said escalation of geopolitical risk in Ukraine and rate hikes by the US Fed and Bank of England in a bid to contain inflation sapped risk appetite.<\/p>\n
Further, the strength of the American currency in the overseas market, a negative trend in domestic equities, and risk-off moods amid escalation of geopolitical risk in Ukraine weighed on the local unit.<\/p>\n
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At the interbank foreign exchange, the rupee opened at 81.08 against the greenback, then fell further to 81.23, registering a fall of 44 paise over its previous closing.<\/p>\n
On Thursday, the rupee plunged by 83 paise — its biggest single-day loss in nearly seven months — to close at an all-time low of 80.79 against the US dollar.<\/p>\n
The Bank of England hiked its base rate by 50 basis points (bps) to a 14-year high of 2.25 per cent.<\/p>\n
The Bank of Japan intervened in the FX market for the first time in 24 years to stem a falling Yen after it kept rates at record lows, IFA Global Research Academy said, adding that the Swiss National Bank hiked rates by a record 75 bps to 0.5 per cent.<\/p>\n
The US Fed has hiked interest rates by 75 basis points to 3-3.25 per cent.<\/p>\n
On Thursday RBI was conspicuous by its absence from the spot market as the rupee fell by 1 per cent possibly as it wanted the rupee to do the catching up, said Anil Kumar Bhansali, head of treasury, Finrex Treasury Advisors.<\/p>\n
“All major events are over for this month as we await RBI’s MPC to give its verdict on September 30, 2022,” Bhansali added.<\/p>\n
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.05 per cent to 111.41.<\/p>\n
Global oil benchmark Brent crude futures fell 0.57 per cent to $89.94 per barrel.<\/p>\n
On the domestic equity market front, the 30-share BSE Sensex was trading 558.59 points or 0.94 per cent down at 58,561.13, while the broader NSE Nifty fell 153.10 points or 0.87 per cent to 17,476.70.<\/p>\n
Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 2,509.55 crore, as per exchange data.<\/p>\n<\/div>\n[ad_2]\n<\/p>\n
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