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Rupee Plummets 19 Paise To Close At Lifetime Low Of 80.98 Against US Dollar

The rupee fell 19 paise to close at a new low of 80.98 against the US dollar on Friday, amid the strong US currency abroad and risky investor sentiment, PTI reported. In the interbank currency market, the local currency crossed the 81 mark for the first time ever and fell to 81.23 against the US currency.

It eventually finished at 80.98, down 19 paise from the previous close. On Thursday, the rupee fell 83 paise, its biggest single day loss in nearly seven months, to close at 80.79, the previous record low. This is the third consecutive loss session for the US currency in which it has lost 124 paise against the US currency.

According to the PTI report, forex traders said the escalation of geopolitical risk in Ukraine and rate hikes by the US Fed and Bank of England in an effort to contain inflation undermined risk appetite. Furthermore, the strength of the US currency in the overseas market, a negative trend in domestic equities and a risky mood amid the escalation of geopolitical risks in Ukraine weighed on local unity.

“The rupee fell to new lows against the US dollar after the Fed raised interest rates earlier this week. Most currencies are under pressure as the dollar continues to strengthen,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial services. .

Somaiya further noted that volatility in the yen remained high after the Bank of Japan intervened to curb the sharp depreciation. The Bank of England raised interest rates by 50 bps.

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“We expect the USD-INR (Spot) to trade sideways, trading between 80.40 and 81.20,” said Somaiya.

In the domestic stock market, the BSE Sensex 30 shares fell 1,020.80 points or 1.73 percent to end at 58,098.92, while the broader NSE Nifty fell 302.45 points or 1.72 percent to 17,327.35.

Foreign institutional investors were net sellers in the capital market on Thursday as they sold shares worth Rs 2,509.55 crore, according to stock market data.

Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, rose 0.72 percent to 112.15.

Global Brent crude oil futures fell 1.98 percent to $88.67 a barrel.

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