Rupee drops significantly below 79 per dollar
The rupee on Tuesday strengthened for the fourth straight session and fell well below 79 per dollar, largely driven by foreign capital inflows and a significant reversal in a weaker dollar.
Bloomberg quoted the rupee at 78.6512 against the greenback as compared to its previous close of 79.0262 on Monday.
The rupee edged up 37 paise to provisionally close at 78.69 against the US dollar, PTI reported.
that Reversal from repeated lows in rupee and breach of 80 per dollar has been significant and sharp,
The reversal in the rupee’s fortunes is driven by foreign investors turning into net buyers of Indian assets and easing bets on aggressive Federal Reserve monetary action amid fears of a recession, falling to its lowest level since mid-June.
The dollar continued its decline on Tuesday, falling to its lowest level in two months against the recovery of the Japanese yen and losing ground on other peers as investors continued to position for a less aggressive pace of Fed rate hikes.