Rupee plunges to 78.40 per dollar, new all-time low

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The rupiah hit a new low at 78.40 against the dollar on Wednesday

New Delhi:

The rupee fell 27 paise to a record low of 78.40 (tentative) against the US dollar on Wednesday on foreign outflows and continued losses in domestic equities.

A stronger greenback overseas also weighed on rupee sentiment, forex traders said. However, lower crude prices in the international market limited the rupiah’s loss, they added.

In the interbank foreign exchange market, the local currency opened at 78.13 against the greenback and saw an intraday high at 78.13 and a low at 78.40.

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National Unity finally finished at a record high of 78.40, down 27 paise from its previous close. In the previous session, the Rupee stood at 78.13 against the US Dollar.

The dollar index, which gauges the strength of the greenback against a basket of six currencies, rose 0.05% to 104.48.

Meanwhile, foreign portfolio investors pulling money out of the country for the eighth to nine straight months are also likely to have put pressure on the domestic currency, analysts said.

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So far in June, foreign investors have withdrawn about Rs 38,500 crore.

“The rupiah fell to fresh all-time lows, especially as the dollar rose against its major crosses. The greenback rose ahead of the Fed Chairman’s testimony. comment could be hawkish and it could support the dollar at lower levels,” said Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services.

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Typically, the Reserve Bank of India intervenes in the market through liquidity management, including the sale of dollars from foreign exchange reserves, to prevent a sharp depreciation in the value of the rupee.

India’s foreign exchange reserves for the week ending June 10, 2022 fell by $4.59 billion to $596.46 billion, according to RBI data.

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