Rupee breaches 70.50 against US dollar, falls to new low
The currency today opened at 70.30 against the dollar, touching a high 70.24 and a low of 70.64, breaching the previous all-time high of 70.40.
Mumbai: The rupee today weakened to a record low against the US dollar, after strong US consumer confidence data aided the dollar. Rupee closed at 70.59 a dollar, down 0.69% from its previous close of 70.11. The currency opened at 70.30 against the dollar, touching a high 70.24 and a low of 70.64, breaching the previous all-time high of 70.40.
The rupee remained Asia’s second-worst performer on Wednesday after Thailand’s baht, with most regional peers trading lower after strong US consumer confidence data aided the dollar.
In a report released today, Moody’s said higher oil prices and rising interest rates were putting pressure on the government’s budget and current account, although mitigated by robust GDP growth and other factors.
The Reserve Bank of India appears to have turned less aggressive in defending the rupee, letting the currency slide closer to its real-effective exchange rate, amid an emerging-market sell-off.
The 10-year bond yield stood at 7.918%, from Tuesday’s close of 7.896%. Bond yields and prices move in opposite directions.
The Sensex lost 0.45%, or 173.70 points, to close at 38,722.93 in afternoon trade. Since January, it has gained 13.70%.
So far this year, rupee has weakened 9.52%, while foreign investors have sold $249.49 million and $7.86 billion in equity and debt markets, respectively.
Asian currencies were trading lower. China Offshore lost 0.436%, China renminbi 0.368%, Thai Baht 0.358%, Philippine Peso 0.301%, Singapore Dollar 0.219%, Malaysian Ringgit 0.212%, Indonesian Rupiah 0.130%, Japanese yen 0.054% and South Korean Won 0.050% . However, Taiwan dollar gained 0.049% and Hong Kong Dollar 0.004%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.875, up 0.16% from its previous close of 94.72.
With agency inputs