Rupee falls to all-time low of 82.33

Mumbai, October 7: The rupee depreciated 16 paise to an all-time low of 82.33 against the US dollar in early trade on Friday as a firm American currency and risk-averse sentiment among investors weighed on the local unit.

Moreover, a negative trend in domestic equities and elevated crude oil prices sapped investor appetite, forex traders said.

At the interbank foreign exchange, the rupee opened at 82.19 against the greenback, then fell to 82.33, registering a fall of 16 paise over its previous close.

On Thursday, the Indian currency for the first time closed below the 82 level against the greenback. It plunged 55 paise to close at a record low of 82.17 against the US currency.

“An uptick in crude prices has caused concerns around the trade deficit to resurface. US rates staying higher for longer is not helping the capital account,” IFA Global Research Academy said in a note.

Moreover, the Reserve Bank of India (RBI) seems to have become conservative in spending reserves, it said, adding that these factors are causing the rupee to adjust.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.14 per cent down at 112.10.

Global oil benchmark Brent crude futures fell 0.10 per cent to USD 94.33 per barrel.

(Except for the headline, this story has not been edited by The Kashmir Monitor staff and is published from a syndicated feed.)