The Indian rupee hit 80 per dollar on Tuesday (July 19), for the first time ever, yet another record low, as international investors kept offloading the Indian stocks. The rupee fell to 80.06 against the dollar. The currency has been impacted by the nation’s record high foreign equity outflows of about $30 billion so far this year, now worrying about a widening current account deficit in the face of high oil and commodities prices. The Indian policymakers have taken various steps to stop the rupee’s slide such as from intervention to hiking import taxes on gold, Bloomberg reported.&nbsp;

As per Governor Shaktikanta Das, the Indian central bank is intervening in all market segments to reduce the risk and support a currency’s orderly appreciation or depreciation. However, the Indian rupee touched a record low for the seventh straight session on Tuesday, Reuters reported.&nbsp;

Also read | <a href="https://www.wionews.com/india-news/india-is-set-it-on-course-to-becoming-the-fastest-growing-economy-in-the-world-rbi-498137">India is 'on course to becoming the fastest growing economy in the world': RBI</a>

The RBI has been using its $600 billion in foreign exchange reserves to defend the Indian rupee. Additionally, the monetary authorities enabled trade to be settled in rupees and announced initiatives to increase the foreign currency inflows into the nation.&nbsp;

However, Tuesday saw a decline in oil prices as the dollar fueled purchasing demand. As the West sanctions in Russia, the supplies have disrupted trade flows to refiners and have been a thorn on the side of the oil markets. At the same time, there have been growing concerns that the central bank's efforts to tame surging inflation may lead to recession, which would reduce future fuel demand. Despite the decline in oil prices, several banks were already charging 80 rupees for every dollar in the exchange rate, the State Bank of India said.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/indian-rupee-set-to-depreciate-further-all-set-to-breach-80-per-us-dollar-497209">Indian rupee set to depreciate further, to breach 80 per US dollar</a>

However, it is expected that the&nbsp;rupee might fall to 82 to the dollar by September this year, according to strategists at Nomura holdings Inc. and Morgan Stanley, Bloomberg reported.&nbsp;

The rupee has been reported to reach fresh record lows practically every other day in recent months, and traders believe this trend will continue.&nbsp;

(With inputs from agencies)

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The Indian rupee hit 80 per dollar on Tuesday (July 19), for the first time ever, yet another record low, as international investors kept offloading the Indian stocks.

The Indian rupee hit 80 per dollar on Tuesday (July 19), for the first time ever, yet another record low, as international investors kept offloading the Indian stocks. The rupee fell to 80.06 against the dollar. The currency has been impacted by the nation’s record high foreign equity outflows of about $30 billion so far this year, now worrying about a widening current account deficit in the face of high oil and commodities prices. The Indian policymakers have taken various steps to stop the rupee’s slide such as from intervention to hiking import taxes on gold, Bloomberg reported. As per Governor Shaktikanta Das, the Indian central bank is intervening in all market segments to reduce the risk and support a currency’s orderly appreciation or depreciation. However, the Indian rupee touched a record low for the seventh straight session on Tuesday, Reuters reported. Also read | India is 'on course to becoming the fastest growing economy in the world': RBI The RBI has been using its $600 billion in foreign exchange reserves to defend the Indian rupee. Additionally, the monetary authorities enabled trade to be settled in rupees and announced initiatives to increase the foreign currency inflows into the nation. However, Tuesday saw a decline in oil prices as the dollar fueled purchasing demand. As the West sanctions in Russia, the supplies have disrupted trade flows to refiners and have been a thorn on the side of the oil markets. At the same time, there have been growing concerns that the central bank's efforts to tame surging inflation may lead to recession, which would reduce future fuel demand. Despite the decline in oil prices, several banks were already charging 80 rupees for every dollar in the exchange rate, the State Bank of India said. Also read | Indian rupee set to depreciate further, to breach 80 per US dollar However, it is expected that the rupee might fall to 82 to the dollar by September this year, according to strategists at Nomura holdings Inc. and Morgan Stanley, Bloomberg reported. The rupee has been reported to reach fresh record lows practically every other day in recent months, and traders believe this trend will continue. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Indian rupee hits low of 80 per dollar for the first time ever

The Indian rupee tumbled to a record low of 77.82 against the US dollar in opening trade on Friday during the intra-day trades.

At the interbank foreign exchange, the rupee opened on a weak note at 77.81 against the American dollar, before ending the session at 77.82.

On Thursday, the rupee fell by 6 paise to close at 77.74 against the US dollar. The previous low of 77.79 was touched on May 17.

It is being said that a spurt in the global price of Brent crude to over $124 per barrel might have caused the Indian currency to depreciate as even a slight rise in crude prices could severely impact India’s current account deficit.

According to Reuters, which has quoted traders, the rupee could weaken towards 79/dollar levels by end of fiscal year 2022/23 but the fall could be accelerated by firm crude oil prices.

India imports nearly 85 per cent of its oil requirements and high crude tends to push up domestic inflation while also widening the country’s trade and current account deficits.

Indian shares continued to incur losses to a fifth session as investors worried that aggressive policy tightening by central banks could stifle global economic growth.

RBI raised its key repo rate by 50 basis points on Wednesday.

Foreign funds have sold stocks worth more than $23 billion so far in 2022 while they are net sellers of $2.1 billion in debt.

Global oil benchmark Brent crude futures fell 0.66 per cent to USD 122.26 per barrel.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04 per cent lower at 103.17.

On the domestic equity market front, the 30-share Sensex was trading 620.68 points or 1.12 per cent lower at 54,699.60, while the broader NSE Nifty declined 165.30 points or 1 per cent to 16,312.80.

(With inputs from agencies)

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The Indian rupee tumbled to a record low of 77.82 against the US dollar in opening trade on Friday during the intra-day trades. At the interbank foreign exchange, the rupee opened on a weak note at 77.

The Indian rupee tumbled to a record low of 77.82 against the US dollar in opening trade on Friday during the intra-day trades. At the interbank foreign exchange, the rupee opened on a weak note at 77.81 against the American dollar, before ending the session at 77.82. On Thursday, the rupee fell by 6 paise to close at 77.74 against the US dollar. The previous low of 77.79 was touched on May 17. It is being said that a spurt in the global price of Brent crude to over $124 per barrel might have caused the Indian currency to depreciate as even a slight rise in crude prices could severely impact India’s current account deficit. According to Reuters, which has quoted traders, the rupee could weaken towards 79/dollar levels by end of fiscal year 2022/23 but the fall could be accelerated by firm crude oil prices. India imports nearly 85 per cent of its oil requirements and high crude tends to push up domestic inflation while also widening the country’s trade and current account deficits. Indian shares continued to incur losses to a fifth session as investors worried that aggressive policy tightening by central banks could stifle global economic growth. RBI raised its key repo rate by 50 basis points on Wednesday. Foreign funds have sold stocks worth more than $23 billion so far in 2022 while they are net sellers of $2.1 billion in debt. Global oil benchmark Brent crude futures fell 0.66 per cent to USD 122.26 per barrel. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04 per cent lower at 103.17. On the domestic equity market front, the 30-share Sensex was trading 620.68 points or 1.12 per cent lower at 54,699.60, while the broader NSE Nifty declined 165.30 points or 1 per cent to 16,312.80. (With inputs from agencies) WATCH WION LIVE HERE

Indian rupee slides to record low of 77.82 against US dollar

The Indian rupee was the second-best performer in Asia, rising the most in over five years on Friday, on lower global oil prices and as China and the United States expressed optimism about resolving their bruising trade war.

A decline in oil prices and the rally in the currency also boosted bonds, which rose to their highest in nearly two months.

"After a long time, the Indian rupee is seeing a day in the sun," said Anindya Banerjee, deputy vice president, currency derivatives, Kotak Securities.

"There were massive long dollar positions, which got hit once the rupee broke the 73 level. Large corporates sold dollars and squared up long positions. The next key trigger will be the mid-term US&nbsp;polls."

The rupee rose as high as 72.4350 vs the dollar, gaining 1.44 percent during trade, the most since Sept. 19, 2013. The currency closed just off the day's high at 72.44 versus 73.4750. There was large-scale unwinding of speculative long dollar positions on the rupee, which led to the sharp rally in the currency relative to its peers in the region, traders said.

Most Asian currencies rallied on hopes after a phone call between the US&nbsp;and Chinese presidents raised hopes of a thaw in trade tensions.

The 10-year benchmark bond yield touched an intraday low of 7.75 per cent, its lowest since August 8. It closed the day at 7.78 per cent versus 7.82 per cent on Thursday.

Going ahead, traders will closely watch the results of US&nbsp;mid-term Congressional polls next week for a cue on the dollar.

Back home they will also keep an eye on the liquidity crunch in the non-banking finance companies (NBFCs). The rupee is expected to touch 72 to the dollar next week as sentiment remains upbeat, dealers said.

A series of debt default by one of the largest infrastructure companies led to massive sell-off in other companies as well in the NBFC space with investors worrying about their ability to repay their short-term debt.

Any major debt default by other companies is likely to shake investor confidence in overall financial markets in India and hit all asset classes including bonds, rupee and stocks, traders said.

The Indian rupee was the second-best performer in Asia, rising the most in over five years on Friday, on lower global oil prices and as China and the United States expressed optimism about resolving their bruising trade war.

The Indian rupee was the second-best performer in Asia, rising the most in over five years on Friday, on lower global oil prices and as China and the United States expressed optimism about resolving their bruising trade war. A decline in oil prices and the rally in the currency also boosted bonds, which rose to their highest in nearly two months. "After a long time, the Indian rupee is seeing a day in the sun," said Anindya Banerjee, deputy vice president, currency derivatives, Kotak Securities. "There were massive long dollar positions, which got hit once the rupee broke the 73 level. Large corporates sold dollars and squared up long positions. The next key trigger will be the mid-term US polls." The rupee rose as high as 72.4350 vs the dollar, gaining 1.44 percent during trade, the most since Sept. 19, 2013. The currency closed just off the day's high at 72.44 versus 73.4750. There was large-scale unwinding of speculative long dollar positions on the rupee, which led to the sharp rally in the currency relative to its peers in the region, traders said. Most Asian currencies rallied on hopes after a phone call between the US and Chinese presidents raised hopes of a thaw in trade tensions. The 10-year benchmark bond yield touched an intraday low of 7.75 per cent, its lowest since August 8. It closed the day at 7.78 per cent versus 7.82 per cent on Thursday. Going ahead, traders will closely watch the results of US mid-term Congressional polls next week for a cue on the dollar. Back home they will also keep an eye on the liquidity crunch in the non-banking finance companies (NBFCs). The rupee is expected to touch 72 to the dollar next week as sentiment remains upbeat, dealers said. A series of debt default by one of the largest infrastructure companies led to massive sell-off in other companies as well in the NBFC space with investors worrying about their ability to repay their short-term debt. Any major debt default by other companies is likely to shake investor confidence in overall financial markets in India and hit all asset classes including bonds, rupee and stocks, traders said.

Rupee rises most in five years, beats most Asian peers

The Indian rupee has clocked its record low&nbsp;of 68.86 against the US dollar. Just yesterday, we saw a sharp nine-month low set in. This has seen a decline in the equity markets as well in the intra-day trading session.&nbsp;

What has really triggered this depreciation of rupee against the dollar?

The rupee has plunged close to 3 per cent since US President-elect Donald Trump&#39;s victory. The foreign institutional investors have pulled out of bonds despite the bond rally on the back of 4 per cent fall in the yield differencial between the American and Indian government securities. The FII holdings in government and corporate bonds have dropped by 1.4 millions dollars in November and 1.7 dollars have been pulled out of Indian equities by FII&#39;s in the same period. The dollar index rally is almost close to a 14-year high.&nbsp;

The expectation of an interest rate hike by the US Federal Reserve is another reason why the rupee has come under pressure. The interest rate hike has strengthened the dollar.&nbsp;

The US bond yields have seen a sharp increase which leads global investors to pull out of India and redirect these funds into US bonds which fetch them a higher rate of return on their investment.&nbsp;

Now this is just a global factor. There are multiple domestic factors that are responsible for such volatility on this counter.

Most brokerage reports have reduced their earnings estimate for the next quarter and even H2FY17. FII&#39;s have reduced their exposure in equities and debt market. The value of portfolios for most investors and especially FII&#39;s stands to be in jeopardy as FII&#39;s now get lower return in dollar terms against the rupee. This also means that the demand curve of dollar rises, further weakening the rupee.&nbsp;

Rupee essentially in the past one to two months according to brokerage reports has outperformed other currencies of emerging markets. Hence, experts feel this could have well been overvalued to begin with.&nbsp;

It has been observed that the Reserve Bank of India is historically known to intervene to curb volatility. If the weakness on the currency&nbsp;is in line with the momentum with other weakening currencies, the RBI may not interfere much.&nbsp;

The weakening rupee can also be a deterrent&nbsp;for the RBI to cut the repo rate.&nbsp; 
&nbsp;

(WION)

The Indian rupee has clocked its record low?of 68.86 against the US dollar

The Indian rupee has clocked its record low of 68.86 against the US dollar. Just yesterday, we saw a sharp nine-month low set in. This has seen a decline in the equity markets as well in the intra-day trading session. What has really triggered this depreciation of rupee against the dollar? The rupee has plunged close to 3 per cent since US President-elect Donald Trump's victory. The foreign institutional investors have pulled out of bonds despite the bond rally on the back of 4 per cent fall in the yield differencial between the American and Indian government securities. The FII holdings in government and corporate bonds have dropped by 1.4 millions dollars in November and 1.7 dollars have been pulled out of Indian equities by FII's in the same period. The dollar index rally is almost close to a 14-year high. The expectation of an interest rate hike by the US Federal Reserve is another reason why the rupee has come under pressure. The interest rate hike has strengthened the dollar. The US bond yields have seen a sharp increase which leads global investors to pull out of India and redirect these funds into US bonds which fetch them a higher rate of return on their investment. Now this is just a global factor. There are multiple domestic factors that are responsible for such volatility on this counter. Most brokerage reports have reduced their earnings estimate for the next quarter and even H2FY17. FII's have reduced their exposure in equities and debt market. The value of portfolios for most investors and especially FII's stands to be in jeopardy as FII's now get lower return in dollar terms against the rupee. This also means that the demand curve of dollar rises, further weakening the rupee. Rupee essentially in the past one to two months according to brokerage reports has outperformed other currencies of emerging markets. Hence, experts feel this could have well been overvalued to begin with. It has been observed that the Reserve Bank of India is historically known to intervene to curb volatility. If the weakness on the currency is in line with the momentum with other weakening currencies, the RBI may not interfere much. The weakening rupee can also be a deterrent for the RBI to cut the repo rate. (WION)

What has really triggered this depreciation of rupee against the dollar?