The rupee plunged 37 paise to close at an all-time low of 81.90 (provisional) against the US dollar on Wednesday 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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In the intra-day trade, the rupee slipped below the 82-level for the first time against the American currency, as a negative trend in domestic equities and significant foreign fund outflows sapped investor appetite.<\/p>\n
At the interbank foreign exchange market, the local currency opened at 81.90, then fell further to close at an all-time low of 81.90 against the American currency, registering a decline of 37 paise over its previous close.<\/p>\n
On Tuesday, the rupee settled 14 paise higher at 81.53 against the dollar.<\/p>\n
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The rupee has nose-dived to a fresh record low amid the risk-averse mood in the markets, said Sugandha Sachdeva, vice president – Commodity and Currency Research, Religare Broking Ltd.<\/p>\n
The slide in the domestic equities and a strong greenback getting close to the crucial 115 mark, almost more than a 20-year high,\u00a0 also dragged the local unit down, Sachdeva added.<\/p>\n
“The greenback has surged around 19.50 per cent for the year.<\/p>\n
\u201cMost of the Asian currencies, including the local unit, are reeling under pressure amid the monetary tightening campaign in the West and concerns about a global economic slowdown,” Sachdeva said.<\/p>\n
Sachdeva further added that limited intervention by the RBI amid declining forex reserves is also leading to the current bout of selling spree witnessed in the rupee.<\/p>\n
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.43 per cent to 114.59.<\/p>\n
According to experts, the focus will now shift to the RBI’s meeting this week, with its decision due on Friday.<\/p>\n
Global oil benchmark Brent crude futures fell 0.41 per cent to $85.92 per barrel.<\/p>\n
On the domestic equity market front, the 30-share BSE Sensex dropped 509.24 points or 0.89 per cent to end at 56,598.28, while the broader NSE Nifty fell 148.80 points or 0.87 per cent to 16,858.60.<\/p>\n
Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 2,823.96 crore, as per exchange data.<\/p>\n<\/div>\n[ad_2]\n<\/p>\n
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