Rupee rises above 79 rupees per US dollar, value likely to fall further
The value of the rupee on Wednesday fell more than 19 paise to close at an all-time low of 79.04 against the US dollar.
“While equity markets have decided that a recession isn’t good for equities, after all, the dollar index managed to undo nearly all of last week’s pullback in a single session. The dollar-yen exchange rate was back above 136 this morning, and the Indian rupee hit a new all-time low,” Jeffrey Halley, senior market analyst, Asia Pacific, OANDA was quoted by The economic period.
Notably, US yields barely budged overnight, so the yen and rupee have no excuses on that front. It seems markets are much more comfortable rushing to the seeming safety of the dollar at the first sign of trouble,” Halley said.
A rise in global crude prices also weighed on the national currency.
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The dollar is up nearly 6% year-to-date against the Indian rupee.
International crude oil prices have been above the psychologically crucial $100 a barrel mark since February.
Inflation hits a multi-decade high in advanced economies.
Inflation in India is also above the allowed tolerance band at the moment.