The rupee on Monday declined by 10 paise to 79.94 (provisional) against the US dollar, tracking a firming US currency and firming crude oil prices.
At the interbank forex market, the local currency opened at 80.10 and settled at its all-time low of 80.15 against the US dollar in intra-day trade.
The local unit finally closed at $79.94 per dollar, down 10 paise from its previous close of 79.84.
On July 20, the rupee had closed below 80 points at 80.05 against the US currency for the first time.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.28% higher at 109.10, after Federal Reserve Chairman Jerome Powell took a bullish tone to fight inflation. .
According to Anuj Choudhary, Research Analyst, Sharekhan, BNP Paribas, the rupee depreciated due to the strengthening of the dollar and fall in global risk sentiment and touched its all-time low.
Global markets fell sharply over 2% amid a scathing speech by US Fed Chairman Jerome Powell.
“We expect the rupee to trade on a negative note on a stronger dollar and weak global market sentiments. Concerns over global economic slowdown and inflationary concerns may also put pressure on the rupee,” Chowdhury said.
Chowdhary further said that markets may also remain cautious ahead of India’s GDP, manufacturing PMI and trade deficit data later this week.
Chowdhary said traders could remain cautious this week ahead of US consumer confidence, ISM manufacturing PMI and non-farm payroll data.
“USD/INR spot price is expected to trade in the range of Rs 79.20 to Rs 80.80 in the next few sessions,” he added.
Global oil benchmark Brent crude futures rose 0.64% to $101.64 a barrel.
On the domestic equity market front, the BSE Sensex closed 861.25 points or 1.46% lower at 57,972.62, while the broader NSE Nifty ended 246.00 points or 1.4% lower at 17,312.90.
Foreign institutional investors were net sellers in the capital markets on Friday as they sold shares worth 51.12 crore, according to stock exchange data.