Rupee falls 19 paise to close at lifetime low of 80.98 against U.S. dollar

Equity indices fell sharply by nearly 2% each, extending their decline for the third day running

The rupee slumped 19 paise to close at a fresh lifetime low of 80.98 against the U.S. dollar on September 23, 2022, weighed down by the strong American currency overseas and risk-off sentiment among investors.

At the interbank foreign exchange market, the local currency breached the 81-mark for the first time ever and slumped to 81.23 against the American currency.

It finally ended at 80.98, down 19 paise over its previous close.

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

This is the third straight session of loss for the American currency during which it has lost 124 paise against the American currency.

Forex traders said escalation of geopolitical risk in Ukraine and rate hikes by the US Fed and Bank of England in a bid to contain inflation sapped risk appetite.

Further, the strength of the American currency in the overseas market, a negative trend in domestic equities, and risk-off mood amid escalation of geopolitical risk in Ukraine weighed on the local unit.