Rupee falls 20 paise to close at record low of 78.13 against U.S. dollar
The Hindu
Brent crude futures, the global oil benchmark, declined 1.58% to $120.08 per barrel
The rupee plunged 20 paise to close at an all-time low of 78.13 against the United States dollar on Monday, as a lacklustre trend in domestic equities and stronger greenback overseas weighed on investor sentiments.
Forex traders said weak Asian currencies and persistent foreign capital outflows were the other major factors that dragged the local unit down.
At the interbank foreign exchange market, the local currency opened at 78.20 and witnessed an intra-day high of 78.02 and a low of 78.29 against the U.S. dollar.
The local unit finally settled at its all-time low of 78.13, down 20 paise over its previous close.
On Friday, the rupee had tumbled 19 paise to close at a record low of 77.93 against the U.S. dollar.
"The Indian rupee, taking cues from weaker regional currencies plummeted to a life low. The dollar extended gains on Monday as U.S. treasury yields rose after Friday’s inflation shock raised speculation of a more aggressive rate hike from the Federal Reserve this Wednesday," Dilip Parmar, Research Analyst, HDFC Securities.
Mr. Parmar further noted that after Friday’s U.S. inflation data, money markets are pricing a 175 bps hike by its September decision, implying two half points and one 75 bps hike.
