Rupee Slides 60 Paise In 4 Days, Closes At Record Low Against US Dollar

The rupee fell 9 paise to close at a fresh low of 83.2175 against the US dollar on Thursday on account of the firm American dollar and increased crude oil prices.

The rupee has seen a decline of 60 paise in the week since Monday when it registered at 82.71 against the dollar.

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The rupee fell 9 paise to register a fresh closing low of 83.2175 against the US dollar on Thursday. This marks the fourth consecutive day of the downward trend of the rupee. 

The fall was credited to the strong American dollar and increased crude oil prices. Forex traders, however, said that the upward movement in the domestic equity markets helped soften the blow for the rupee, reported PTI. 

At the interbank foreign exchange, the rupee opened at 83.15 against the dollar and traded in the range of 83.12 to 83.22 against the American currency. It closed trading at the lowest level of 83.22, marking a decline of 9 paise over its previous close. The rupee settled at 83.13 against the US dollar on Wednesday. In October 2022, the local unit hit a record low of 83.29. However, Thursday's figure was the lowest closing tally for the rupee. 

The rupee has seen a decline of 60 paise in the week since Monday when it registered at 82.71 against the dollar. On Tuesday, the Indian currency stood fell 33 paise, recording its largest fall in the week.  

Meanwhile, crude oil extended beyond the $90 per barrel mark after oil-producing countries maintained an extension of their supply cut till December this year, and the dollar stayed strong on safe-haven demand. The Brent crude futures, which is the global oil benchmark, stood at $90.25 per barrel. 

“We expect rupee to trade with a negative bias on strong dollar and elevated crude oil prices. Disappointing European data may further support dollar. Rising US treasury yields and concerns over global economic growth may also weigh on rupee,” said Anuj Choudhary, research analyst at Sharekhan by BNP Paribas, as cited in the report.

The dollar index continued to increase and registered a gain of 0.09 per cent to 104.95. The index measures the US dollar’s strength against a basket of six currencies. 

The domestic markets fared better than the Indian currency. The BSE Sensex closed with a gain of 385.04 points at 66,265.56 points. The Nifty moved well beyond the 19,700 mark and ended the day at 19,727.05.