Rupee closes at all-time low of 82.34 against US dollar
The local currency had opened at 82.69, falling 39 paise from its previous close of 82.30.
The rupee on Monday fell by four paise to close at a record low of 82.34 against the US dollar, PTI reported.
Earlier in the day, the local currency had opened at a record low of 82.69, falling 39 paise from its previous close of 82.30.
This is the second consecutive session when the Indian currency touched an all-time low after having breached the 82-per-dollar mark on October 7.
The rupee depreciated amid rising crude oil prices and following a US jobs report that strengthened the case for the Federal Reserve to persist with aggressive rate hikes.
“The paradoxical construct of good economic news turning out to be bad news for markets played out again last Friday in the US,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services. “The surprisingly low US unemployment rate at 3.5% implies that the Fed will have to continue raising interest rates longer than the markets had discounted.”
The development came even as the Reserve Bank of India has been selling foreign exchange reserves to support the rupee amid pressures majorly caused by global developments.
“The double whammy of higher US rates and higher crude prices is back to haunt the rupee,” said IFA Global Research Academy said in a note. “While the RBI was able to defend the rupee successfully through the last round of simultaneous stress on current and capital account by spending its reserves, this time around things are likely to be different.”
The price of Brent crude oil has neared $100 (around Rs 8,238.19), with analysts predicting it to climb further.
Meanwhile, Indian shares fell on Monday, weighed down by a decline in automobile stocks and Asian equities.
The 30-share BSE Sensex closed after losing 200 points or 0.34% to 57,991. The broader 50-share NSE Nifty declined 73.65 points to 17,241.