Rupee slides past 81.50 to hit fresh low against US dollar | Mint
Active Stocks
Thu Feb 29 2024 14:49:25
  1. Kotak Mahindra Bank share price
  2. 1,697.15 0.81%
  1. Axis Bank share price
  2. 1,074.95 0.03%
  1. Tata Steel share price
  2. 140.90 0.11%
  1. Power Grid Corporation Of India share price
  2. 280.20 0.23%
  1. ITC share price
  2. 406.65 -0.48%
Business News/ Markets / Stock Markets/  Rupee slides past 81.50 to hit fresh low against US dollar
BackBack

Rupee slides past 81.50 to hit fresh low against US dollar

Rupee-US dollar rate: Focus now shifts to RBI's meeting this week, with its decision due on Friday, say analysts

On Friday, the rupee slumped 30 paise to close at a fresh lifetime low of 81.09 against the US dollarPremium
On Friday, the rupee slumped 30 paise to close at a fresh lifetime low of 81.09 against the US dollar

The rupee depreciated 44 paise to an all-time low of 81.53 against the US dollar in early trade today as a firm US dollar and risk-averse sentiment pounded emerging market currencies. Escalation Ukraine crisis, selloff in domestic equities and foreign fund outflows also weighed on the rupee. On Friday, the rupee slumped 30 paise to close at a fresh lifetime low of 81.09 against the US dollar. Dollar has strengthened across the board on risk aversion and flight to safety.

Focus now shifts to RBI's meeting this week, with its decision due on Friday.

“Amid a liquidity deficit of more than 21,000 crore in the banking system, RBI will have lesser room to step in and curb rates and volatility. Despite the deficit, RBI might have used its reserves as forex storage fell by another $5.22 billion to $545.65 billion. The upcoming RBI’s monetary policy, which is due on the 30th September will be important as the announcement on the repo rate hike, cut in CRR, and changes in stance will be watchful," CR Forex Advisors said in a note. 

Meanwhile, India's forex reserves declined $5.219 billion to $545.652 billion for the week ended September 16.

“Nonetheless, currency market players want an early dose of injection to calm down the shaky nerves. However, further strength in the US dollar globally could not keep the rupee trading at an exceptionally fine. Overall, we expect the USD-INR pair to remain volatile with downside support at 80.50 and strong bullish momentum could not rule out 82.50 levels on the upside," the forex advisory firm said in a note. 

In currency trading, the recent rise in the U.S. dollar has been a concern. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.72% to 113.778. On the domestic equity market front, the 30-share BSE Sensex was trading 800 points lower.  Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth 2,899.68 crore, as per exchange data.

Anand James - Chief Market Strategist at Geojit Financial Services, said: “We continue to scout for the upside target of 81.8 with downside marker placed at 80.7 for now." (With Agency Inputs)

 

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 26 Sep 2022, 10:13 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App