Repee further falls 58 paise to record low of 81.67/$
Spot USD-INR may head towards 82 as strength in the dollar index continues with surging bond yields; India’s forex reserves declined $5.219 bn to $545.652 bn for week ended Sept 16
Mumbai: The rupee plunged 58 paise to close at an all-time low of 81.67 (provisional) against the US dollar on Monday as the strengthening of the American currency overseas and risk-averse sentiment among investors weighed on the local unit.
Moreover, escalation of geo-political risks due to conflict in Ukraine, a negative trend in domestic equities and significant foreign fund outflows sapped investor appetite, forex traders said. At the interbank foreign exchange (forex) market, the local currency opened at 81.47, then fell further to close at an all-time low of 81.67 against the American currency, registering a decline of 58 paise over its previous close. On Friday, the rupee slumped 30 paise to close at 81.09, its previous record low. This is the fourth consecutive session of loss for the domestic unit, during which it has lost 193 paise against the American currency.
"Another day of large gains for the dollar versus the rupee as it fell for the fourth day in a trot amid risk-averse sentiments and unprecedented strength in the greenback following Fed tightening and recession worries. Spot USD-INR may head towards 82 as strength in the dollar index continues with surging bond yields. In the near-term, spot USD-INR is having resistance at around 82 and support at 81.05," said Dilip Parmar, research analyst, HDFC Securities.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.46 per cent to 113.71. According to experts, focus will now shift to RBI's meeting this week, with its decision due on Friday. The 38th meeting of the Monetary Policy Committee (MPC), constituted under the Reserve Bank of India Act, will be held during September 28 - 30. Global oil benchmark Brent crude futures fell 0.70 per cent to $85.55 per barrel. On the domestic equity market front, the 30-share BSE Sensex dropped 953.70 points or 1.64 per cent to end at 57,145.22, while the broader NSE Nifty fell 311.05 points or 1.8 per cent to 17,016.30. Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 2,899.68 crore, as per exchange data.