Home Business Rupee weakens slightly to 82.38 as dollar dominated in early trade

Rupee weakens slightly to 82.38 as dollar dominated in early trade

Domestic currency weakens largely against dollar

The rupee fell on Tuesday as the dollar was driven by risk-off sentiment in early trade, but investors will keep an eye on the Reserve Bank of India’s resolve to limit any sharp fall in the domestic currency, as it did in the previous session, and It had declined. Oil prices are also likely to help.

According to Bloomberg, the rupee was changing hands for the last time at 82.3325 after opening at 82.3325 in a limited range of 82.3313 to 82.3862 in early trade.

In the previous session, the rupee closed almost flat at 83.32 per dollar, helped by RBI intervention after the currency opened at a new record low for the second straight session and hit an all-time low of 82.6950 against the greenback in early trade . , following a US jobs report on Friday that reinforced bets on more aggressive rate hikes.

The rupee strengthened from its new record low of 82.70 to nearly 82.40 in a span of about ten minutes after the Indian central bank sold the dollar through state-run banks on Monday.

Anil Kumar Bhansali, Head, Anil Kumar Bhansali said, “The RBI yesterday sold over $1 billion to protect the sharp depreciation of the rupee, giving some relief to importers, which this year saw a 10.50 per cent appreciation in the value of the domestic currency.” You can start panicking after the fall of.” of the Treasury at Finrex Treasury Advisors.

“Range for the day is expected to remain in the range of 82.20 to 82.80 as Asian currencies fall from their recent highs. Markets await US and Indian CPI (Inflation) data. US data may show slight downside. Whereas Indian data may show an increase,” he said.

While traders expect the RBI to be highly cautious and liable for any wild moves, they predict a broader trend of the rupee depreciating based on flight-to-safety bets.

The market is “still looking for a floor” for the rupee, and it seems “we are not there yet”, a Mumbai-based trader told Reuters.

Ashish Ranade, forex and treasury chief manager at Cosmos Bank, told Reuters: “If the RBI does not intervene…

Asian currencies saw a fall on Tuesday, while the dollar index rose to 113.22, on track to post its fifth daily gain.

The dollar weighed heavily on fragile financial markets, driven by expectations of an aggressive Federal Reserve rate outlook, rising recession risks in major economies and geopolitical tensions.

Meanwhile, oil prices, on which the rupee is struggling, have cooled slightly. Brent crude was hovering near $ 96 a barrel, which had climbed to $ 98.75 on Monday.

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