Indian Rupee falls 11 paise against US dollar, hits intraday low of 78.29 today

On the domestic equity market front, the BSE Sensex ended 1,456.74 points or 2.68 % lower at 52,846.70, while the broader NSE Nifty tanked 427.40 points or 2.64 % to 15,774.4

INR - market times
article continues after this advertisement

Dropping for the third straight session, the rupee depreciated by 11 paise to close at a fresh lifetime low of 78.04 against the US dollar on Monday as a global market meltdown and stronger greenback overseas weighed on investor sentiment.

The safe-haven dollar climbed as investors wagered on accelerated rate hikes by the Federal Reserve after US consumer inflation soared to a four-decade high in May.

Weak Asian currencies and persistent foreign capital outflows were the other major factors that dragged the rupee lower, forex traders said.

At the interbank foreign exchange market, the local currency opened at 78.20 and witnessed an intra-day high of 78.02 and a low of 78.29 against the US dollar.

The local unit finally settled at its all-time low of 78.04, down 11 paise over its previous close of 77.93.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.55 % to 104.71.

Brent crude futures, the global oil benchmark, declined 1.58 % to USD 120.08 per barrel.

On the domestic equity market front, the BSE Sensex ended 1,456.74 points or 2.68 % lower at 52,846.70, while the broader NSE Nifty tanked 427.40 points or 2.64 % to 15,774.40.

Continuing their selling spree, foreign institutional investors offloaded shares worth a net ₹4,164.01 crore on Monday, as per stock exchange data.

“The Indian Rupee depreciated on Monday and posted a record closing low against the dollar as a surge in US inflation raised speculation about more aggressive steps by central banks boosting a selloff in risk assets,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.

The local unit also tracked a broader decline in Asian and emerging market peers. However, depreciation was capped on central bank intervention, he added.

“The Indian rupee, taking cues from weaker regional currencies plummeted to a life low. The dollar extended gains on Monday as US treasury yields rose after Friday’s inflation shock raised speculation of a more aggressive rate hike from the Federal Reserve this Wednesday,” said Dilip Parmar, Research Analyst, HDFC Securities.