Closing Bell: Rupee Plunges 15 Paise To Settle At All-Time Low Of 82.32 Against US Dollar

The local currency in the interbank foreign exchange market started the day at 82.19 versus the dollar, then it dropped to 82.43, then ended for the day at an all-time low of 82.32.

Rupee closes at all-time low

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The rupee fell 15 paise to reach an all-time low of 82.32 (provisional) versus the US dollar on Friday as a strong US dollar and investors' risk aversion affected the local currency. Additionally, dealers for currency noted that a downward trend in local stocks and high crude oil prices dampened investor interest. The local currency in the interbank foreign exchange market started the day at 82.19 versus the dollar, then it dropped to 82.43, then ended for the day at an all-time low of 82.32, representing a loss of 15 paise from its previous close.

Rupee falls 15 paise to close at all-time low of 82.32 (provisional) against US dollar

— Press Trust of India (@PTI_News) October 7, 2022

For the first time ever, the Indian rupee's closing price versus the US dollar was below 82 on Thursday. It fell 55 paise to end the day at an all-time low of 82.17.

Reason For Downfall

After Fed policymakers stated, that they will not slow down the pace of rate hikes in their fight against inflation, Asian currencies came under pressure on Friday.

Traders are now anticipating the release of U.S. jobs data later in the day. A strong report is certain to support predictions that the Fed will announce more rate rises.

Falling Globally

The dollar index, which measures the value of the dollar against a basket of six different currencies, fell 0.19 percent to 112.04.

After the oil cartel OPEC decided to reduce output in response to falling global demand, the price of benchmark Brent crude futures jumped 0.82 per cent to USD 95.19 per barrel.

The 30-share BSE Sensex dipped 30.81 points or 0.05 per cent to close at 58,191.29 on the domestic equities market, while the broader NSE Nifty dropped 17.15 points or 0.1 per cent to close at 17,314.65.

According to exchange statistics, foreign institutional investors were net purchasers on Thursday in the capital market, buying shares worth Rs 279.01 crore.

The rupee has lost about 11% of its value so far in 2022 and is on track to have its worst year since 2013. On Friday, demand for the dollar increased as the margins between the rupee and onshore forward rates widened.