Indian Rupee Falls To All-time Low, Breaches 78 Per US Dollar For The First Time Ever
At the inter-bank foreign exchange, the rupee opened at 78.20 against the US dollar, then lost ground to quote at 78.29, its record low level
The rupee on Monday declined 36 paise to its all-time low of 78.29 against the US dollar in early trade, the PTI reported. Tightening expectations by US Federal Reserve after US inflation climbed to four-decade highs has pressured the rupee, which has hit new lows repeatedly since March when it first touched the 77 per dollar mark.
Global investors, tracking the strength of the US currency, flocked to the safe-haven currency amid an overall risk-averse sentiment.
According to forex traders, weak Asian currencies, a lacklustre trend in domestic equities, and persistent foreign capital outflows weighed on investor sentiments.
At the inter-bank foreign exchange, the rupee opened at 78.20 against the US dollar, then lost ground to quote at 78.29, its record low level, logging a fall of 36 paise from the last close.
The rupee on Friday sank 19 paise to close at a fresh lifetime low of 77.93 against the US dollar.
Anil Kumar Bhansali, head of treasury, Finrex Treasury Advisors, said, “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.”
Meanwhile, global oil benchmark, Brent crude futures, slipped 1.46 per cent to $120.23 per barrel.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.30 per cent higher at 104.45.
At 10.15 am, back home, the 30-share BSE Sensex was trading 1,540 points (2.84 per cent) lower at 52763, while the broader NSE Nifty tanked 444 points (2.74 per cent) to 15,757.
According to stock exchange data, foreign institutional investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth Rs 3,973.95 crore.
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