Home Business Rupee hits new record low of 83.12 per dollar

Rupee hits new record low of 83.12 per dollar

Rupee falls to new all-time low of 83.08 per dollar

After breaching the 83 mark for the first time in the previous session, the rupee hit a new record low of 83.08 against a resurgent dollar early Thursday as investor concerns about an impending recession dampened risk appetite.

Bloomberg quoted the rupee at 83.0925 per dollar after opening at 82.9825 and hitting a new record low of 83.1212.

The rupee fell 6 paise to a new all-time low of 83.06 against the US dollar in early trade, PTI reported.

In the last see-saw session, the domestic currency closed earlier sharp gains on Wednesday at its weakest level of 83.02 per dollar, buoyed by the Reserve Bank of India-run currency futures to buffer around $82. was operated for. ability to intervene.

“After consolidating in the range of 82 to 82.70 for 8 trading sessions, the rupee suddenly jumped to 83 levels, making the uneven day an eventful one. The show started in the last one and a half hours when it lost 60 paise. 82.43 to 83.03,” said Amit Pabri, Managing Director, CR Forex Advisors.

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. Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.

“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.

Traders were quoted as saying by Reuters that the currency was sold off in the past 1.5 hours of trading on Wednesday due to significant corporate dollar and custodian outflows.

The domestic currency’s “saving grace” after “yesterday’s calamity” is that it remained almost unchanged at 83 levels after regular trading hours, a currency dealer at the Mumbai-based bank told Reuters.

“In early trading, traders will want to assess how sticky this new big figure proves to be,” the trader said.

Separately, more signs that higher inflation would put major central banks in rate-hike mode came after British inflation rose to a 40-year high, boosting the dollar’s appeal.

The rise in US Treasury yields is based on speculation that the Federal Reserve will continue to raise interest rates aggressively hurting the recent rebound rally of global risk assets.

Scorching inflation data released this week by Canada, Britain and New Zealand also showed that central banks around the world are still struggling to rein in high inflation for decades, even as That even at the cost of stagnation in economic growth, recession concerns and rising demand. To secure property.

The dollar dominated key peers and the yen hit a new 32-year low on Thursday, putting markets on high alert for signs of an intervention.

“You still can’t write off the US dollar, I’m still not sure we’ve seen the highs for this cycle,” Ray Attrill, head of FX strategy at National Australia Bank (NAB), told Reuters.

The Japanese yen hit a fresh trough of 149.96 per dollar, with the brittle Japanese currency losing for 11 consecutive sessions, including six times its 32-year low.

“It looks like it’s a rabbit caught in the headlights at the moment,” said NAB’s Mr Attrill.

“Given that the Treasury yield has moved decisively above 4 percent, had it not been for the threat of interference, I think the dollar/yen would already be trading north of 150.”

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