The rupee hit an all-time low against the US dollar on Monday, weighed by global growth worries due to lockdowns in China and aggressive policy tightening from central banks. Meanwhile, the share market benchmark indexes NSE Nifty 50 index was down 1.06 per cent and the BSE Sensex fell 1.09 per cent.
The rupee tumbled to a record low of Rs 77.46 against the US dollar on Monday.
RUPEE TO DOLLAR
- “Hawkish stance by the Fed (U.S. Federal Reserve), rate hikes by the RBI (Reserve Bank of India) … have created an atmosphere of risk-off for equities and we don’t know how long this will last,” V K Vijayakumar, chief investment strategist at Geojit Financial Services, were quoted as saying by Reuters.
- On Friday last, the rupee witnessed a sharp drop amid a spurt in crude oil prices and unabated foreign fund outflows added to the woes.
- The rupee plummeted 57 paise to close at Rs 76.92 against the US dollar on Friday, weighed down by a strong American currency overseas and firm crude oil prices.
- Foreign institutional investors remained in selling mode, offloading shares worth a net Rs 2,074.74 crore on Thursday, according to stock exchange data.
- On May 5, the rupee managed to gain against the US dollar after a surprise rate hike by the Reserve Bank of India (RBI) and as US Fed Chairman Jerome Powell pushed back against a steeper 75 basis points rate hike in the coming months.
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