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Rupee Hits Record Low To Close At 80.99 Against Dollar

The Indian Rupee had breached the 81 mark in early trade on Friday but RBI's likely intervention in the market helped it to settle at 80.99 against the US dollar

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The Indian rupee today weakened by 0.12 paise to an all-time low and closed at 80.99 against the US dollar on the back of US Treasury yields jumping to fresh multi-year highs and demand for dollars from importers. 

On Thursday, the rupee plunged by 83 paise. Its biggest single-day loss in seven months to close at 80.79, its previous record low.

The domestic unit opened at 81.08 at the interbank foreign exchange, against the greenback, then fell further to 81.24, marking a fall of 0.12 paise over its previous close of 80.86. 

Furthermore, the strength of the US currency in the interbank foreign market, a negative trend in domestic equities, and risk-off moods amid an escalation of geopolitical risk in Ukraine pressured the local unit. 

The RBI likely sold dollars via state-run banks on Friday after the rupee extended losses to hit a record low, three traders told new agency Reuters.

Experts see more chances of further weakness in the rupee. “Historically, whenever a big figure in rupee has been taken out, a move of 2.5 rupees an average has been seen within one month of breakout. Overall, with RBI's absence, the rupee is going to test new lows in the short term and we expect the currency to weaken up to 81.80 and 82.00 levels in the near term," CR Forex Advisors underlined in a note.

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rupee down rupee depreciation economic downturn