Rupee closes 80 mark, slips 18 paise to $ 79.99
The rupee ended Thursday trading higher at $80 a dollar, a touch technicality at 79.99 against the greenback, keeping it away from key psychological levels.
The partially convertible rupee closed at 79.87 per dollar, Bloomberg and Reuters reported, while PTI closed the rupee near 79.99 after settlement.
A PTI report shows that the rupee soared close to the all-time low of 80 per dollar as it closed down a little over 18 paise at 79.9975 on a massive and strong greenback in overseas markets.
At the interbank forex market, the rupee touched a high of $79.71 per dollar in early trade with a strong start to the day. However, the currency lost momentum after the dollar hit a 24-year high against a basket of global currencies.
The rupee finally settled at the day’s low of $79.9975, down 18 paise from its previous close of 79.81.
it marks For the 27th time the currency has hit a new lifetime low Since Russia invaded Ukraine in late February every single day this week has been a record weak one.
“Indian rupee becomes average performer among regional currencies. Rupee closes at record low for fourth consecutive day amid safe-haven demand for dollar after US inflation hit 41-year high. Now rate market research analyst at HDFC Securities” Dilip Parmar told PTI that there are aggressive rate hikes from the Federal Reserve, which supported the dollar.
Spot USD/INR delayed the 80 level in today’s session but a breakout is expected in the coming days. He noted that the pair has found resistance at 80.90 after crossing 80 while support has shifted from 78.50 to 78.80.
PTI reported that some major banks, such as State Bank of India (SBI), were already placing bids above the 80 level for US dollar selloff.
However, this is not the end of the controversy for the Rs. The fear now is that once the rupee breaks the 80-to-dollar level, the fall could be even sharper, as the bets shift in favor of a free fall after the breakout of the key psychological rate, as we have seen. Have seen since Rs. Further weakening at the rate of 77 per dollar based on the momentum of weakness.
“The rupee remained under pressure as the dollar rose sharply against its major crosses. Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services, said, “Today it has come down to the lowest level ever against the US Dollar.
The cap news comes on the heels of another historic moment in the currency markets.
Indeed, the euro fell below parity for the first time on Wednesday to a 20-year low; While the single currency recouped some losses early Thursday, it soon lost its charm and bounced back below $1 on concerns of an energy crisis and political turmoil in Italy.
Sean Osborne, Chief FX Strategist, said: “Given the broader context of ongoing geopolitical uncertainty, pressure in Europe from the energy supply situation in Europe and expectations of interest rate hikes in the US, markets remain open to the dollar. There is clearly a wider priority.” in Scotiabank, told Reuters.
The greenback extended its sharp rally as expectations for a sharp rate hike from the Federal Reserve grew.
The dollar also rose to a 24-year high against the Japanese yen as the Bank of Japan maintained a neutral stance in contrast to swift global moves by central bank peers.
Bloomberg reported that swap markets showed traders were now pricing in a significant likelihood that the Fed would make a 100-basis-point increase in the wake of inflation data projected in July.
Shane Oliver, AMP’s chief economist, told Reuters: “The related aspect in the CPI numbers was the breadth of growth, and he noted that nearly 90 percent of the US CPI components saw an increase of more than 3 percent.
This propelled the dollar to a 20-year high, emerging as a preferred save haven amid rising economic risks.
Market pricing on the Chicago Mercantile Exchange (CME) Fed Watch Tool indicated a 78 percent chance of a 100 basis increase. However, Mr Oliver said it could only be a knee-jerk reaction to the high inflation reading.
“I think the Fed will stick to 75 – which is still a high number – if they go to 100, it will look like they are panicking. Only time will tell, though; without the Fed turning back inflation.” The condition is commitment,’ he added.
a widely accepted A pending bearish indicator pointed to one on the horizon,