Rupee hits all-time low, crosses $81 per dollar for the first time

Rupee Today: Rupee falls to a new record low

The rupee fell to a new record low on Friday, weakening over 81 per dollar for the first time to hit a two-decade high.

After closing at its weakest level on Thursday, the rupee fell 39 paise to an all-time low of 81.18 against the US dollar in early trade, PTI reported.

Bloomberg quoted the domestic currency as closing last at 81.1387 per dollar after opening at 81.0612, compared to a record low of 80.8688 in the previous session.

According to dealers cited by Reuters, lack of proactive intervention by the Reserve Bank of India (RBI) and the Federal Reserve’s (Fed) extremely harsh outlook on interest rates, the local unit on Thursday posted its biggest single session percentage gain since the Ukraine crisis began. experienced loss. At the end of February.

The rupee had gained in the last hour of trading on Thursday and closed at its weakest level ever.

“Just based on yesterday’s momentum, the pair (USD/INR) will reach 81 in early trade,” a currency spot dealer at the Mumbai-based bank told Reuters ahead of the markets’ opening.

“You can expect more importer activity today, and speculators will test RBI once again,” the dealer said.

The rupee was one of the biggest losers among Asian peers on Thursday after a period of outperformance.

Interest rates are rising practically everywhere in the world, with hikes coming this week from countries including the UK, Sweden, Switzerland and Norway.

But the Fed’s aggressive posture has begun to take a toll on others in the currency market as the greenback has benefited from safety flows and higher yields, while the euro has been hampered by the energy crisis and an impending struggle at its door.

The euro, the Australian currency and the New Zealand dollar were hovering near their recent lows on Friday in response to a strong greenback, backed by a very bullish Federal Reserve and rising Treasury yields keeping demand for the dollar.

In contrast, the yen was set to post its first weekly gain in more than a month on Friday after Japanese authorities intervened in foreign exchange markets for the first time since 1998, while a rising dollar pushed other currencies into multi-sports. was trapped near the low of the year. ,