The rupee hit a brand new all-time low against the dollar for the fourth straight trading session because the foreign money ended at 77.73/$, amid continued danger aversion amongst buyers over the prospects of the US Fed tightening curiosity rate coverage. Intervention from the Reserve Bank of India (RBI) helped the foreign money to cap its losses.
The rupee opened weaker at 77.70/$ as in contrast to Wednesday’s shut of 77.58/$ and traded in a slender vary amid intervention from the central financial institution. After touching the day’s low of 77.74/$, the foreign money closed the day at 77.73/$, weakening by 15 paisa than its earlier shut.
“The USDINR pair ended slightly up tracking a sell-off from domestic indices as the global risk-off mood, along with the prospects for a more aggressive policy tightening by the Fed supported safe-haven dollar demand,” IFA Global mentioned in a be aware. “The RBI’s continued intervention today to protect the level of 77.70 has capped any major gains in the pair,” IFA Global mentioned. The rupee has lost 2.7 per cent worth because the Russia-Ukraine warfare broke out on February 24.
“Overall, the outlook on rupee doesn’t seem promising as factors such as a fall in equities, volatile commodity prices, uncertainty over growth, hawkish Fed, and a stronger USD suggest a depreciating bias. Hence, we expect the rupee to steadily depreciate toward 78.00-78.20 over the short term to medium term,” mentioned Amit Pabari, managing director, CR Forex.