India Finance News

Rupee weakens To A New All-Time Low Of 77.69; Markets Eye RBI – NDTV Profit

Rupee weakens To A New All-Time Low Of 77.69

The rupee weakened to a new all-time low of 77.69 against the dollar early on Tuesday, with traders watching the domestic share market for clues to fund flows, even as the US currency fought for a footing as investors trimmed bets on whether interest rate rises will drive further dollar gains.

The greenback has edged from a two-decade high this week and was a touch softer across the board in early Asia trade, while US bond yields, an important boost to the dollar, have pulled back slightly as traders reckon aggressive near-term hikes will drag on longer-run economic growth.

The rupee fell 14 paise to 77.69 against the US dollar in early trade on Tuesday from the previous record low of 77.50 on Thursday, after hitting a fresh intra-day weak level of 77.63 against the American currency.

At the interbank foreign exchange, the rupee opened weak at 77.67 against the dollar, then lost further ground to 77.69. The domestic currency also touched its record intra-day low of 77.71 to a dollar in early deals.

On Friday, the currency recovered to end at 77.31 as the RBI intervened in the open market to stem losses.

The interbank foreign exchange market in India was shut on Monday because of the Buddha Purnima holiday.

The currency had previously breached 77 against the dollar earlier in March for the first time ever.

Indian equity benchmarks were trading higher with all eyes on the listing of state-run Life Insurance Corp, the country’s biggest IPO, set for later in the session.

Traders will also watch for central bank intervention if the currency racks up sharper losses during the session.

Emerging markets assets have taken a beating on foreign capital exodus driven by the dollar’s appeal on a general increase in flight-to-safety trades.

The latest stock exchange data showed foreign institutional investors (FIIs) remained net sellers in the capital market as they offloaded Indian shares worth Rs 1,788.93 crore on Monday.

Exit mobile version