The rupee reached a new all-time low on Wednesday as it breached the 79 mark against the dollar, making it the sixth session in a row of historically low levels.
On Wednesday, the rupee crossed the critical level of 79 against the dollar for the first time ever, marking the sixth session in a row of all-time low levels as concerns over rising inflation and oil prices came back to the fore and impacted emerging market assets.
According to PTI, the rupee crossed the 79-to-a-dollar mark on Wednesday. According to the article, the currency depreciated 19 paise to a provisional record low closing of 79.04 per dollar, hurt by ongoing foreign capital outflows brought on by flight-to-quality bets.
The rupee opened weakly versus the dollar at 78.86, then declined to conclude the session provisionally at 79.04, its lowest point ever.
According to Bloomberg, the rupee’s intraday low was quoted at 78.985 to the dollar, just shy of the 79-to-a-dollar threshold. The rupee had lost 48 paise on Tuesday, falling to a record low of 78.85.
Every single session over the preceding six, including the most recent one on Wednesday, saw the currency conclude at a fresh record low.
Recently, the Reserve Bank of India intervened in the market to support the rupee.
However, given the rupee’s drop is being hastened by the RBI’s present intervention method in the future market, Reuters, citing analysts and traders, said that the RBI would need to adjust its tactics to reduce the pressure on the currency. Since shattering the 78-to-a-dollar rate this month, the rupee has fallen to a number of all-time lows and is now dangerously close to 79 as worries about growth, portfolio outflows, high global petroleum prices, and continuing inflation weigh.
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.