Rupee at Record Low

Rupee at Record Low: The Indian rupee breached 80 against the US dollar for the first time on Tuesday. The domestic unit has dropped nearly 7 percent against the US dollar this year. What should investors know?

The Indian rupee on Tuesday breached the psychologically significant level of 80 against the US dollar for the first time. The local currency opened the day at 79.98 per US dollar against the previous close of 79.97. Then, it immediately hit a record low of 80.0175 in early trade. The rising trade deficit, continuous outflow of foreign portfolio investors, and rising crude oil prices have kept the rupee under pressure for some time now. It has dropped nearly 7 percent against the US dollar this year.

The Indian rupee has declined by about 25 percent since December 31, 2014, finance minister Nirmala Sitharaman said in the Lok Sabha on July 18. Global factors such as the Russia-Ukraine conflict, soaring crude oil prices, and tightening of global financial conditions are the main reasons behind the fall of the rupee, the finance minister pointed out.

Rupee plunges to new record low; breaches 80-mark against US dollar: How it may impact you

Foreign portfolio investors have withdrawn about $14 billion from Indian equity markets in 2022-23 so far, Sitharaman said. The outflow of foreign portfolio capital is a major reason for the depreciation of the Indian rupee, she added.

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India’s merchandise trade deficit widened to a record $26.18 billion in June. The trade deficit stood at $24.3 billion in May. The record-high trade deficit also added pressure on the domestic unit.

The US dollar hovered on Tuesday just above a one-week low reached overnight versus major peers. The dollar index – which gauges the greenback against six counterparts – was flat at 107.47.

Rupee Outlook for Investors

“Pull back above 79.95 has negated the bear move, rendering the overall trend neutral, awaiting a directional push. The 79.95 regions will continue to be key, with 79.85-80.15, the narrow band in which USD-INR is expected to be in today,” said Anand James, chief market strategist at Geojit Financial Services.

Indian Rupee Drops to Another Record Low as Foreign Funds Exit

“The Indian rupee is expected to open flat to weaker this Tuesday morning weighed down by outflows and high oil prices. Lack of intervention from the RBI could also weigh on sentiments. So, the rupee could open around 79.99-80.00 per dollar this Tuesday morning from 79.97/dollar close in the previous session. USD-INR pair range for the pair this Tuesday’s session is 79.75-80.12,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.

“The rupee has finally breached the 80-mark, a key psychological level. The rupee is expected to further slide due to the current severe rate hike by the US Fed, relentless selling by foreign investors, and the rising demand for the USD due to its haven status. Nevertheless, the RBI is aware of the falling rupee quagmire and could take actions to curb the further depreciation, thus we expect further downside to 81 to 81.5 levels,” Punit Patni, equity research analyst, Swastika Investment.

Indian Rupee Drops to Another Record Low as Foreign Funds 

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18 hours ago — The Indian rupee touched another record low as foreign investors continued to sell the nation’s equities. The rupee declined to as low as 

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1 day ago — The Indian rupee declined to 80.0125 per US dollar on Tuesday, a new record low. Other emerging market currencies are also feeling the heat 

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8 days ago — The rupee weakened to a fresh low against the US dollar on Tuesday as the greenback surged to a 20-year high globally and domestic equities 

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9 hours ago — India’s rupee hit a record low on Tuesday, against the backdrop of a stronger dollar and rising aversion by global investors to owning risky 

Rupee Hits New Record Low Of 78.78, But RBI Intervention 

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28-Jun-2022 — After ending at record lows in each of the previous four trading sessions, the rupee plummeted to a new intraday low of 78.78 against the dollar 

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01-Jul-2022 — Rupee hits all-time low of 79.11 against US dollar · On the interbank forex market on Friday, the rupee opened 5 paise lower at 79.11 against the 

Indian rupee falls past 80 against the dollar to hit record low

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18 hours ago — The Indian rupee hit a seventh straight session of record lows on Tuesday as weakness in domestic shares and currencies weighed, but dollar 

Rupee at record low; touches 80-mark in intra-day trade

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2 days ago — NEW DELHI: The Indian currency plunged to record low levels against the US dollar on Monday. Continuing its depreciation for yet another 

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02-Jul-2022 — The reason is simple: If you are competing primarily on price, because at your stage of development you can’t compete on technology or product 

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01-Jul-2022 — The Indian rupee plunged on Friday to mark the fourth straight session of record lows, breaking below the 79-per-dollar mark, weighed down 

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22-Jun-2022 — The fresh fall was seen amid selling in emerging market equities and currencies ahead of the US Fed Chair Jerome Powell’s testimony to US 

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2 days ago — The rupee is expected to range from 81.25-81.50 against the dollar by this year end, however, some relief is likely to be seen in March 

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2 days ago — The currency opened at 79.75 and touched an all time low of 79.9825. So far this year, the currency has weakened 7.05 percent.

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15 hours ago — The partially convertible rupee recovered from the low struck earlier to trade at 79.91/92 per dollar by 0536 GMT compared with its close of 

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2 days ago — The Rupee had weakened to a record low of Rs 79.96 last week, weighed down by broad gains in the dollar as red-hot inflation data raised 

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22 hours ago — MUMBAI: The Indian rupee fell to more than 80 per United States dollar for the first time on record on Tuesday (Jul 19), as the greenback 

 

 

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