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Rupee falls 39 paise to fresh lifetime low of 82.69 against US dollar in early trade

October 10, 2022

Image Source : PTI/ REPRESENTATIVE
The rupee depreciated 39 paise to an all-time low of 82.69 against the US dollar in early trade on Monday as elevated crude oil costs and risk-averse sentiment amongst traders weighed on the native unit.

Highlights

A damaging pattern in home equities and agency American foreign money sapped investor urge for food
On Friday, the rupee depreciated additional by 13 paise to hit a closing low of 82.30 against dollar
Global oil benchmark Brent crude futures fell 0.87 per cent to USD 97.07 per barrel

Rupee v/s Dollar: The rupee depreciated 39 paise to an all-time low of 82.69 against the US dollar in early trade on Monday as elevated crude oil costs and risk-averse sentiment amongst traders weighed on the native unit.

Moreover, a damaging pattern in home equities and agency American foreign money sapped investor urge for food, foreign exchange merchants stated.

At the interbank overseas trade, the rupee opened at 82.68 against the buck, then slipped additional to 82.69, registering a fall of 39 paise over its earlier shut.

On Friday, the rupee depreciated additional by 13 paise to hit a brand new lifetime closing low of 82.30 against the US dollar.

“The double whammy of higher US rates and higher crude prices is back to haunt the rupee. While the RBI was able to defend the rupee successfully through the last round of simultaneous stress on current and capital accounts by spending its reserves, this time around things are likely to be different,” IFA Global Research Academy stated in a word.

India’s foreign exchange reserves dropped by USD 4.854 billion to USD 532.664 billion as on September 30, the Reserve Bank stated on Friday.

The reserves, which have been dipping because the central financial institution deploys the kitty to defend the rupee amid pressures triggered majorly by international developments, had declined by over USD 8.134 billion to USD 537.518 billion in the earlier reporting week.

“After having exhausted a significant portion of its reserves, RBI seems concerned about the burn rate of reserves and appears to be spending them very judiciously. This has resulted in the rupee adjusting and aligning itself with fundamentals and its peer group currencies,” IFA Global Research Academy’s word stated.

Meanwhile, the dollar index, which gauges the buck’s energy against a basket of six currencies, was buying and selling 0.02 % up at 112.81.

Global oil benchmark Brent crude futures fell 0.87 % to USD 97.07 per barrel.

On the home fairness market entrance, the 30-share BSE Sensex was buying and selling 646.25 factors or 1.11 % decrease at 57,545.04, whereas the broader NSE Nifty fell 192.10 factors or 1.11 % to 17,122.55.

Foreign institutional traders had been internet sellers in the capital market on Friday as they offloaded shares price Rs 2,250.77 crore, as per trade information.