On opening of market, the Indian currency, rupee hits at new low of 77.80/dollar as compared to the previous close of 77.74/dollar – this was an all-time closing low.
The rupee hits fresh lows during intraday as it touched 77.80 against the dollar as risk-averse investors continue to withdraw from emerging markets in the middle of surging crude oil prices.
Amit Pabari, managing director of CR Forex said, “Sword is still hanging on rupee amid persistent FII’s selling from EM’s leading to Asain currencies weakening, elevated oil prices, and revised upward inflationary pressure for coming quarters.”
The Indian currency strained after the US Federal Reserve started to tighten monetary policy to tackle the high inflation. Most of the global currencies are facing inflationary pressure for supply-side issues and a surge in oil prices following the Russian invasion of Ukraine in late February.
In the current financial year, the rupee depreciated by over 2.5 per cent. The central bank, which slowed the pace of rupee’s depreciation, has been intervening aggressively.
Pabari said, “The only ray of hope for rupee presently will remain RBI who has actively and aggressively participated to protect rupee from the heat so far.”
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