Rupee sinks below 80 mark to fresh record low against dollar
Rupee vs dollar forex rate today: The rupee sank below the 80 mark against the dollar for the first time in more than a month. A sell-off across equities, a surging dollar overseas and rising crude oil rates put pressure on the rupee.
The rupee hit a record low of 80.08 against the US dollar on Monday amid a meltdown on Dalal Street tracking a global sell-off, a strengthening dollar overseas and rising oil prices.
The rupee slipped below the 80 mark for the first time since July 21, 2022.
It closed at standing at Rs 79.9 against one dollar.
Fed Chair Jerome Powell's more-hawkish-than-expected tone at his speech in the annual Jackson Hole symposium dashed nascent hopes of moderate increases in COVID-era interest rates to tame inflation. Powell signalled that interest rates would be kept higher for longer to bring down inflation.#Rupee ends at 79.96/$ Vs previous close of 79.87/$ pic.twitter.com/pl07soVMf4
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The dollar scaled a 20-year peak against major peers. The dollar index — which measures the greenback against a basket of currencies — rose as much as 0.6 percent to 109.45.
Crude oil prices climbed on fears of reduced output from the Organization of the Petroleum Exporting Countries (OPEC) and its allies — together known as the OPEC Plus.
Brent crude futures rose 0.9 percent to $101.9 a barrel.
What to expect in the rupee going forward
One can expect the rupee to move within a range of 79.70-80.50 against the US dollar in the next 1-2 weeks, according to Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities.
"The RBI has the twin objective of not letting the rupee become a weak outlier and it does not want the USD-INR to become too volatile. This means it may continue to sell dollars as the spot and forwards move to fresh all-time highs."
"However, this may not alter the trajectory of the pair and the path of least resistance would remain upward," he added.
Vishnu Varathan of Mizuho Bank on CNBC-TV18 said that he expect a 50 bps rate hike by Fed in September and expect rupee to test between 80-81 against US dollar.
The rupee had closed at $79.87 on Friday.
(Edited by : Sandeep Singh)
First Published: Aug 29, 2022 10:47 AM IST
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