Rupee Hits All-Time Low Of 76.97 Against US Dollar Before Slight Recovery

With crude oil prices shooting up to $110/barrel, most emerging market currencies, like in Indian rupee, weakened against the dollar

The previous all-time low was hit on March 7 when the rupee touched the same level as 76.97 per dollar on Friday. Image: Getty

New Delhi: The rupee depreciated to an all-time low against the US dollar after the currency declined to 76.97 levels during afternoon trades on Friday. However, it rebounded to 76.85 because of suspected intervention by the Reserve Bank of India (RBI).

At the day's trade, the rupee plummeted 57 paise to close at 76.92 (provisional) against the US dollar on Friday, weighed down by a strong American currency overseas and firm crude oil prices. With crude oil prices shooting up to $110/barrel, most emerging market currencies, like in Indian rupee, weakened against the dollar.

The Indian currency opened weaker on Friday at 76.64 to the dollar, from the previous close of 76.26, in the wake of a sharp fall in US equities, as the treasury yields moved up with investors rushing for safe haven assets resulting in strengthening of dollar.

The previous all-time low was hit on March 7 when the rupee touched the same level as today 76.97 per dollar.

The central bank has been intervening in the foreign exchange markets which resulted foreign exchange reserves depleting about $20 billion in one month. RBI always maintains that they intervene to smoothen the volatility and do not target any particular level of the currency.

According to a report by the PTI, forex traders said the rupee had gained in the past two sessions against the US dollar after a surprise rate hike by the RBI and as US Fed Chairman Jerome Powell pushed back against a steeper 75 basis points rate hike in the coming months.

However, unabated foreign fund outflows and firm crude oil prices weighed on the local unit.

On the domestic equity market front, the 30-share Sensex ended day’s trade 866 points lower at 54,835 points, while the broader NSE Nifty declined 271 points to 16,411 points.

Global oil benchmark Brent crude futures advanced 2.31 per cent to $113.46 per barrel.