Rupee Hits 80 Per Dollar For The First Time Ever

Today’s Rupee: The Rupee hit a new record low on Friday, trading well below 81 per dollar for the first time.

Rupee ends beyond 81 against dollar for the first time

Rupee Hits 80 Per Dollar For The First Time Ever : The rupee plummeted to a new record low on Friday, sharply dropping above 81 per dollar for the first time as the dollar reached its highest level in 20 years. The PTI reported that the rupee fell 39 pips in early trading against the US dollar to a record low of 81.18 after closing at its weakest level on Thursday. Bloomberg listed the country’s currency last changed hands at 81.1387 per dollar after opening at 81.0612, compared to a record low of 80.8688 in the previous session.

Rupee Hits 80 Per Dollar For The First Time Ever : Lack of aggressive intervention by the Reserve Bank of India (RBI) and a very hawkish stance on interest rates by the Federal Reserve Board (Fed) led to Thursday’s local gains for the first time since Ukraine, according to traders quoted by Reuters. I experienced the largest loss rate in my session. The crisis began in late February.

Rupee Hits 80 Per Dollar For The First Time Ever

The rupee accelerated its decline in the final hours of trading on Thursday, closing at its weakest level ever. “Based on yesterday’s momentum alone, the pair (USD/INR) will reach 81 in early trading,” a Mumbai-based bank currency spot trader told Reuters before the market opened. “We can expect more importer activity today and speculators will retest the RBI,” the trader added. The rupee recorded the biggest drop among its Asian currencies on Thursday after a temporary outperformance.

Rupee Hits 80 Per Dollar For The First Time Ever

Finrex Treasury Advisors finance chief Anil Kumar Bhansari said the RBI was notable for its absence from the spot market as the rupee fell 1% on Thursday. “All major events for the month have ended as he awaits the RBI’s MPC decision on 30 September 2022,” he added. A Reuters poll showed the RBI could raise rates again, but economists are divided on how much the central bank will raise rates. Interest rates have risen significantly almost everywhere in the world, with rates hikes happening this week in countries such as the UK, Sweden, Switzerland and Norway. However, the Fed’s aggressive stance casts a shadow over the rest of the FX market.

The euro is hampered by the energy crisis and looming conflict, while the dollar benefits from safe money flows and rising yields. Policymakers expect another 1.25% tightening by the end of the year, and the Federal Reserve (Fed) is prepared to endure a recession as a necessary compromise to regain control of inflation sending out a powerful message. Krishna Guha, Vice Chairman of Evercore ISI, told Bloomberg: “This new high interest rate path is very likely to land hard over the long term and is therefore not only clearly hawkish but also clearly risky.

Rupee hits record low vs US dollar for second day

I’m looking at it,” he said. Euro, Australian currency and New Zealand dollar all trade near recent lows in response to dollar strength, aided by a very hawkish Federal Reserve and higher US Treasury yields sustaining demand for the dollar By contrast, the yen was on track to record its first weekly gain in more than a month on Friday after Japanese officials intervened in the currency market for the first time since 1998. Despite efforts to stem the decline, the offshore yuan fell despite the People’s Bank of China setting a higher daily reference rate than his 22-day forecast.