The rupee fell 16 paise to close at an all-time low of 82.33 against the US currency on Thursday on rising US bond yields, investors’ risk aversion and steady crude oil prices. determined.
The local currency traded at 82.30 a dollar as of 9:30 a.m., down 0.5% from the previous close of 81.89. The coin opened at 82.19 and hit an all-time low of 82.33 early in the day and failed to recover.
On Thursday, the Indian currency closed below the 82 level for the first time against the greenback. It fell 55 places to close at a record low of 82.17 against the US currency.
“Rising crude oil prices have revived concerns around the trade deficit,” the IFA Institute for Global Studies said. “Long-term higher US rates are not helping the capital account.” , said the IFA Institute of Global Studies.
Furthermore, the Reserve Bank of India (RBI) seems to have turned cautious in its spending reserve, adding that these factors are causing the rupee to correct.
The dollar index, which measures the greenback’s strength against a basket of six currencies, is trading 0.14% down at 112.10.
A Reuters poll says the rupee will trade near a record low against the strong greenback this year, supported by rising oil prices and the US Federal Reserve’s aggressive interest rate hike campaign. .
The rupee has fallen more than 10% this year and hit an all-time low of 82.33 per dollar on Friday, news agency PTI reported, although the Reserve Bank of India continues to sell foreign exchange reserves to protect the local currency.
While it found a brief respite after the RBI delivered its fourth straight rate hike last week, a widening trade deficit due to rising oil prices and slowing exports has dragged down the rupee. .
On Wednesday, a consortium of oil producers led by Saudi Arabia agreed to sharply cut output, bringing Brent crude futures to a three-week high of $93.99 a barrel.
Higher crude oil prices will add to the problem of inflation and a widening current account (CAD) deficit as India imports more than 80% of its oil needs.
The greenback, which has been rising this year on an irreversible trend, fell on Thursday, encouraging some risk-takers and helping the complex commodity, where oil is trading around all-time highs. three weeks.