Home / Economy / Rupee jumps against US dollar, a day after sliding to all-time lows

The rupee jumped against the US dollar dollar after hitting all-time low in the previous session. The was up 22 paise at 77.22 vs USD as compared to previous closing of 77.44. On Monday, the rupee had slumped 54 paise to close at an all-time low of 77.44 against the US dollar.

“India has witnessed FYTD23 FPI outflow of US$5.8 billion. Given the uncertainty and limited RBI intervention, USD-INR could trend towards 78 levels in the immediate near term. We expect the new USD-INR near term range of 76.50-78 in the near term," said Upasna Bhardwaj, Senior Economist, Kotak Mahindra Bank.

Asian stocks, including Indian markets, were mostly lower following a selloff on Wall Street as fears increased that US rate hikes to fight inflation might stall economic growth. Oil prices fell more but stayed above $100 per barrel.

Risk assets have tumbled as the Federal Reserve is trying to cool inflation that is running at a four-decade high, but investors worry that might trigger a US downturn. That adds to pressure from Russia's war on Ukraine and a Chinese slowdown.

The dollar index edged lower today to 103.602 against its global rivals, helping the domestic rupee, traders said. On the domestic equity market front, the 30-share Sensex was trading flat. 

Meanwhile, LIC's mega public offering closed on Monday closed with nearly 3 times subscription. Foreign institutional investors remained net sellers in the capital market on Monday, as they offloaded shares worth 3,361.80 crore, as per stock exchange data. 

"A relief on the rupee front can only be seen if the dollar index cools off hence rupee can be seen as weak till the time it's below 76.50 on the lower-end rupee can touch 78.00 incoming sessions which shall create fresh short unwinding in the dollar and making rupee even weak," said Jateen Trivedi, Senior Research Analyst at LKP Securities.

(With Agency Inputs)

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