New Delhi: In early trade on Monday, India’s official currency, the Rupee, fell 51 paise to an all-time low of Rs 77.41 versus the US dollar.
The rupee opened at 77.17 against the dollar on the interbank foreign exchange, before losing ground to quote at 77.42, a 52-paise drop from the previous close. The Rupee has already surpassed the previous low of 76.98 set in March.The rupee fell 55 paise to settle at 76.90 against the US dollar on Friday.
The reason for the rupee’s depreciation could be attributed to demand for riskier assets as well as international investors continuing to dump domestic stocks.
Investors are also concerned that the larger Asian stock market will continue to fall as the COVID lockdown in Shanghai tightens, threatening global economic development.
According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the Indian Rupee began lower versus the dollar on Monday as global shares fell on concerns about the economy and rising bond yields impacted on sentiments.
Risk appetite has diminished, according to forex traders, as inflation fears grow, perhaps prompting more aggressive rate hikes by global central banks.
The dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.35 percent at 104.02, after rising US yields and concerns about higher interest rates.
Furthermore, Asian and emerging market rivals started the day sluggish, weighing on emotions.
On the domestic equities market, the 30-share Sensex was down 737 points, or 1.34 percent, at 54,098.58, while the wider NSE Nifty was down 220.25 points, or 1.34 percent, at 16,191.00.
Brent crude prices increased 0.14 percent to USD 112.55 per barrel, the global benchmark.
According to stock exchange data, foreign institutional investors were net sellers in the capital market on Friday, offloading shares worth Rs 5,517.08 crore.
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