Home Business 83.29. The rupee rose sharply to $ 82.75 per dollar after...

83.29. The rupee rose sharply to $ 82.75 per dollar after hitting a record low of Rs.

Rupee recovers some losses after hitting record low of 82.29 per dollar

The rupee plunged below 83 against the dollar on a resurgence of RBI intervention after the domestic currency fell sharply to an all-time low of 83.29, driven largely by a global sell-off in riskier assets. was. session on Thursday.

After opening at 82.9825, Bloomberg showed that the rupee was last turning around at 82.7538 per dollar and hit a new record low of 83.2925.

The domestic currency ended 25 paise higher at 82.75 against the US dollar, PTI reported. Fag-end buying in domestic equities also supported the sentiment.

Anil Kumar Bhansali, Head Anil Kumar Bhansali said, “After hitting a lifetime low of 83.2325, the rupee fell below 83/$. Currently trading at 82.85 as RBI processes the currency’s sharp depreciation. Sell ​​dollars in the open market to smooth it out.” of the Treasury at Finrex Treasury Advisors.

Reuters reported that the rupee was at 82.86 against the dollar, down from 83.0200 on the previous day. At the start of the session, the local unit fell to a record low of 83.2625.

According to traders who spoke to Reuters, the RBI was selling dollars and engaging in buy/sell swaps as the rupee fell to a new record low.

Recently, RBI has intervened through sale of advance dollars instead of spot transactions as according to analysts, the central bank is likely to hold spot reserves to avoid impacting the liquidity of the rupee with its participation.

A Reuters survey has shown that the rupee may fall to 84.50 by December.

In the previous session, the domestic currency reversed earlier sharp gains on Wednesday to close at its weakest level at 83.02 per dollar, which is expected to buffer the RBI’s ability to intervene in currency futures at around $82. Inspired by possibility.

The rupee’s depreciation was fueled by a broader dollar strength and increased stop loss at 72.40, a level the RBI may have wanted to protect.

“Yesterday, the rupee’s weakness was on account of potential dollar buyout by RBI at 82.02 in currency futures and sizable outflow of around $500 million from Gas Authority of India Limited (GAIL) and Mangalore Refinery and Petrochemicals Limited (MRPL),” ” What was said. Mr. Bhansali.

“RBI did not protect 82.40, and short covering of the pair took it to 83.00, with stop loss starting from 82.40 to 83.50,” he said.

Separately, the dollar’s appeal grew, fueled by additional indications that strong inflation will put major central banks in rate-hike mode once British inflation hits a 40-year high.

A rise in US Treasury yields interrupted the recent surge in global risk assets on hopes that the Federal Reserve will continue to raise interest rates sharply.

Shocking inflation data from Canada, Britain and New Zealand, released this week, also demonstrated that central banks around the world are still struggling to control decades of high inflation, even as a slowing economic downturn. Even at the expense of growth, increased recession fears, and increased demand for safe-haven assets.

For the first time since 1990, the dollar hit a symbolic 150 yen threshold on Thursday, helped with Treasury rates trading at multi-year highs and putting markets on high alert for interference from Japanese officials.

With the euro at $0.9786 and the pound continuing to decline, moves in other major currencies were more restrained. The euro was still trying to make up the ground it had lost during the dollar’s rise the previous day.

By Wednesday’s closing, the fragile Japanese yen had lost ground for 11 consecutive sessions and has already renewed its 32-year low six times.

Takumi Tsunoda, senior economist at Shinkin Central Bank Research, said: “Until the end point of the US interest rate is clear, the dollar will not strengthen. up or not.” The institute in Tokyo told Reuters.


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