Rupee falls to fresh record low, may hit 84 per dollar mark in near-term amid Fed rate hike fears, FII selling

Rupee falls to fresh record low, may hit 84 per dollar mark in near-term amid Fed rate hike fears, FII selling

The Indian rupee opened marginally lower on Thursday to hit a fresh lifetime low against the US dollar, tracking losses in Asian currencies as increasing speculation on aggressive tightening by the US Fed dampened investor sentiment. The domestic currency opened at 83.04 per dollar and touched a fresh all-time low of 83.08. The Bloomberg Dollar Spot Index climbed as much as 0.2% after jumping 0.6% in the previous session. The Indian currency has now lost around 2% this month and close to 12% against the American dollar in 2022.

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“‘Even a small spark of the matchstick is enough to burn the entire jungle’- that is what we could analyze from yesterday’s Rupee move. Moving forward, this kind of volatility could become a new normal as both domestic and global factors will keep on playing. As the pair is once again trading into unchartered territory, a psychological level of 83.50 and then 84 will act as resistances. On the flip side, the previous high near 82.70 will act as strong support for the pair,” said Amit Pabari, MD, CR Forex Advisors.

In the previous session, the rupee plunged 60 paise to end at 83 against the US dollar. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.07 per cent to 113.06. Brent crude futures, the global oil benchmark, slipped 0.17 per cent to $92.25 per barrel. In the domestic equity market, BSE Sensex was trading 140.09 points or 0.24 per cent lower at 58,967.10. Similarly, the broader NSE Nifty fell 43.95 points or 0.25 per cent to 17,468.30.

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