The rupee plunged 58 paise to close at an all-time low of 81.67 (provisional) against the US dollar on Monday as the strengthening of the American currency overseas and risk-averse sentiment among investors weighed on the local unit.<\/p>\n
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Moreover, escalation of geopolitical risks due to conflict in Ukraine, a negative trend in domestic equities and significant foreign fund outflows sapped investor appetite, forex traders said.<\/p>\n
At the interbank foreign exchange market, the local currency opened at 81.47, then fell further to close at an all-time low of 81.67 against the American currency, registering a decline of 58 paise over its previous close.<\/p>\n
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On Friday, the rupee slumped 30 paise to close at 81.09, its previous record low.<\/p>\n
This is the fourth consecutive session of loss for the domestic unit, during which it has lost 193 paise against the American currency.<\/p>\n
“Another day of large gains for the dollar versus the rupee as it fell for the fourth day in a trot amid risk-averse sentiments and unprecedented strength in the greenback following Fed tightening and recession worries,” said Dilip Parmar, Research Analyst, HDFC Securities.<\/p>\n
Spot USD-INR may head towards 82 as strength in the dollar index continues with surging bond yields, Parmar said, adding that in the near-term, spot USD-INR is having resistance at around 82 and support at 81.05.<\/p>\n
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.46 per cent to 113.71.<\/p>\n
According to experts, focus will now shift to RBI’s meeting this week, with its decision due on Friday.<\/p>\n
The 38th meeting of the Monetary Policy Committee, constituted under the Reserve Bank of India Act, will be held during September 28 – 30.<\/p>\n
Global oil benchmark Brent crude futures fell 0.70 per cent to $85.55 per barrel.<\/p>\n
On the domestic equity market front, the 30-share BSE Sensex dropped 953.70 points or 1.64 per cent to end at 57,145.22, while the broader NSE Nifty fell 311.05 points or 1.8 per cent to 17,016.30.<\/p>\n
Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 2,899.68 crore, as per exchange data.<\/p>\n
Meanwhile, the country’s forex reserves declined $5.219 billion to $545.652 billion for the week ended September 16.<\/p>\n<\/div>\n[ad_2]\n<\/p>\n
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