Finance
Rupee fell to a new all-time low on Friday as the dollar strengthened and global crude oil prices rose.
After hitting 77.88 in intraday trading, the currency closed at a record low of 77.84 against the dollar. The rupee closed at 77.77 per dollar on Thursday, marking the third consecutive trading day in which the Indian currency reached an all-time low.
Currency dealers said the central bank’s intervention in the foreign exchange market continued, slowing the rupee’s fall.
“Rupee hit its fresh all-time low but has, in the past few sessions, been very resilient and is consolidating in a narrow range despite volatility in domestic and global equities and strength in the dollar against its major currencies,” said Gaurang Somaiya, forex & bullion Analyst, Motilal Oswal Financial Services.
Rupee has been under pressure since Russia invaded Ukraine in late February, escalating the geopolitical crisis. In the current fiscal year, the Indian rupee fell 2.64 percent against the dollar, and it fell 0.26 percent this month.
Analysts expect the rupee to remain under pressure and to breach the 78-to-dollar mark in the coming sessions.
The central bank has been aggressively intervening in all segments of the currency market. Since the start of the European war, the country’s foreign exchange reserves have dropped by around $30 billion. According to the most recent data released by the RBI on Friday, total reserves fell $306 million for the week ending June 3 to $ 601 billion.
Source:BS
