Indian currency, Rupee plunges by 41 paise to close at a fresh lifetime low of 79.36 against the US Dollar on Tuesday due to the greenback overseas and unrelenting foreign fund outflows.
At the interbank forex market, the local unit started at 79.04 against the greenback and witnessed an intra-day high of 79.02 and a low of 79.38. Eventually, it settled at 79.36 and fell 41 paise over its previous close. On Monday, the rupee closed at 78.95 against the US Dollar.
“The Indian currency hit a fresh record low against the US Dollar on Tuesday on the back of a stronger Dollar and weaker-than-expected domestic data,” said Anuj Choudhary, Research Analyst at Sharekhan.
“Rupee is expected to trade on a negative note on a firm tone in the US Dollar, elevated oil prices, and weak global market sentiments,” Choudhary said.
He later added that “Dollar may strengthen on expectations of aggressive rate hikes by the Federal Reserve.” He believes that a hike in import duty on gold may support the rupee to some extent. The rupee may trade in the range of 78.50 to 80 in the next couple of sessions.
The Dollar index (which measures the greenback’s strength against a basket of six currencies) was up 0.89% at 106.o7.
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Other Key Details
- Brent crude futures fell 1.10% to USD 112.25 per barrel.
- The BSE Sensex closed 100.42 points or 0.19% lower at 53134.35.
- The Broader NSE Nifty declined 24.50 points or 0.15% to 15,810.85.
- Foreign institutional investors remained net sellers in the capital market because of offloaded shares worth Rs 2,149.56.