Rupee falls 18 paise to close at record low of 79.03 against US dollar

The sentiment remains feeble for the rupee amid foreign fund outflows and fear of dollar shortages following quantitative tightening from the US Federal Reserve.

Published: 29th June 2022 05:11 PM  |   Last Updated: 29th June 2022 05:11 PM   |  A+A-

Indian currency, rupees, INR, money

Image used for representational purposes only. ( File Photo | Reuters)

By PTI

MUMBAI: The rupee depreciated 18 paise to close at a record low of 79.03 (provisional) against the US dollar on Wednesday, weighed down by persistent foreign capital outflows, a strong dollar overseas and a surge in crude oil prices.

At the interbank foreign exchange market, the rupee opened lower at 78.86 against the greenback and finally settled at 79.03, down 18 paise over its previous close.

During the session, the rupee touched an all-time low of 79.05 against the American currency. On Tuesday, the rupee plunged by 48 paise to close at the record low of 78.85 against the US dollar. The domestic unit has lost 1.97 per cent so far this month and has eroded a staggering 6.39 per cent since the start of this year.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.13 per cent higher at 104.64.

The rupee depreciated following risk-averse sentiments and weaker regional currencies, Dilip Parmar, Research Analyst, HDFC Securities said, adding "high demand and tighter dollar liquidity following quarter-end rebalancing weighed on a local unit(rupee)".

The sentiment remains feeble for the rupee amid foreign fund outflows and fear of dollar shortages following quantitative tightening from the US Federal Reserve.

"The short-term outlook for spot USD/INR remains bullish and one can see a level of 79.10 in the coming days, while on the lower side support has been shifted to 78.38," Parmar said.

Global oil benchmark Brent crude futures advanced 0.34 per cent to USD 118.38 per barrel.

On the domestic equity market front, the 30-share BSE Sensex ended 150.48 points or 0.28 per cent lower at 53,026.97, while the broader NSE Nifty fell 51.10 points or 0.32 per cent to 15,799.10.

Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 1,244.44 crore, as per stock exchange data.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp