Rupee settles at all-time low of 78.33 against US dollar

Brent crude futures, the global oil benchmark, advanced 1.13 per cent to USD 111.29 per barrel.

Mumbai: The rupee on Friday slipped 1 paisa to close at its all-time low of 78.33 against the US dollar amid growing concerns over aggressive monetary policy tightening by central banks and relentless foreign capital outflows.

Positive domestic equities and a weak American currency overseas supported the local unit, forex dealers said.

At the interbank foreign exchange market, the local currency opened at 78.20 and finally settled at its all-time low of 78.33, down 1 paisa from its previous close.

MS Education Academy

During the day, the local unit witnessed an intra-day high of 78.19 and a low of 78.35 against the American currency.

On Thursday, the rupee had settled at 78.32 against the US dollar.

According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the Indian Rupee depreciated on Friday and remained weak for an 8th straight week on growing concerns that aggressive monetary policy tightening by central banks to curb inflation could raise the risk of a global economic slowdown.

“The Rupee has weakened over the last few sessions after FPI remained net sellers in the domestic equity and debt markets,” Iyer said.

According to the latest data from NSDL, FPIs have sold about USD 5.9 billion of domestic equities so far in June, compared with about USD 5.2 billion in net sales for the whole of May, he said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.25 per cent to 104.17.

Brent crude futures, the global oil benchmark, advanced 1.13 per cent to USD 111.29 per barrel.

On the domestic equity market front, the BSE Sensex ended 462.26 points or 0.88 per cent higher at 52,727.98, while the broader NSE Nifty gained 142.60 points or 0.92 per cent to 15,699.25.

Foreign institutional investors remained net sellers in the capital market on Thursday as they offloaded shares worth Rs 2,319.06 crore, as per stock exchange data.

Meanwhile, Reserve Bank Deputy Governor Michael D Patra on Friday said the Central Bank will not allow “jerky movements” of the rupee and stressed that the Indian currency has witnessed the least depreciation in recent times.

“We will stand for its stability, and we’re doing it on an ongoing basis even as I speak. We are there in the market. We will not allow disorderly movements. We have no level in our mind, but we will not allow jerky movements that is for certain and let it be widely known that we are in the market defending the rupee against volatility,” he said.

Patra further said if one looks at the depreciation of the rupee, it is one of the least in the world and that is the power of USD 600 billion dollar reserves.

Crude oil prices rebounded this Friday afternoon trade, while most of the emerging and Asian peers were weak and weighed on sentiments.

“Rupee consolidated in a narrow range despite gains in domestic equities. Dollar retraced against major crosses and that kept the rupee supported,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

Somaiya further added that the USDINR is expected to trade sideways in the range of 77.70 and 78.50.

Subscribe us on The Siasat Daily - Google News
Back to top button