Rupee opens all time low at 82.28 against USD

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Rupee opens all time low at 82.28 against USD. The rupee today fell down to 16 paise an all-time low of 82.33 against the US dollar in early trade on Friday as a firm American currency and risk-averse sentiment among investors weighed on the local unit and firm crude oil price.

The rupee opened at 82.19 against the greenback, then fell to 82.33, registering a fall of 16 paise over its previous close at the interbank foreign exchange.

On Thursday, the Indian currency for the first time closed below the 82 level against the greenback. It plunged 55 paise to close at a record low of 82.17 against the US currency.

An uptick in crude prices has caused concerns around the trade deficit to resurface. US rates staying higher for longer is not helping the capital account,” IFA Global Research Academy said in a note.

Moreover, the Reserve Bank of India (RBI) seems to have become conservative in spending reserves, it said, adding that these factors are causing the rupee to adjust.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.14 per cent down at 112.10.

A poll has said the rupee will trade near its record low against the mighty greenback beyond this year, buffeted by rising oil prices and an aggressive U.S. Federal Reserve rate-hiking campaign.

The World Bank on Thursday also trimmed India’s growth forecast for this financial year by a full percentage point amid rising commodity prices.

A weak rupee has driven dollar selling by RBI to support the currency. But this raises concern for India dwindling foreign exchange reserves.

 

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