Rupee hits all-time low of 82.69 against US dollar

The rupee fell 39 paise to an all-time low of 82.69 versus the US dollar in opening trade on Monday as high crude oil prices and risk-averse sentiment among investors weighed on the domestic currency.

Furthermore, a negative trend in local stocks and strong American currency dampened investors’ confidence, according to forex traders.

Also Read | Why rupee slipped past 82 against US dollar

The rupee began at 82.68 versus the US dollar on the interbank foreign exchange, then slipped to 82.69, recording a drop of 39 paise from its previous close.

The Indian rupee fell 13 paise to hit a new lifetime closing low of 82.30 against the US dollar.

Also Read | Once upon a time: Rupee’s journey from 4 to 82 a dollar

“The double whammy of higher US rates and higher crude prices is back to haunt the rupee. While the RBI was able to defend the rupee successfully through the last round of simultaneous stress on current and capital accounts by spending its reserves, this time around things are likely to be different,” IFA Global Research Academy said in a note.

Also Read | Week ahead: FOMC minutes, Inflation data, quarterly results to weigh on key indices

India’s forex reserves dropped by USD 4.854 billion to USD 532.664 billion as on September 30, the Reserve Bank said on Friday. The reserves, which have been falling as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments, had declined by over USD 8.134 billion to USD 537.518 billion in the previous reporting week.

Also Read | Week in review: Indian equity indices rise on positive global cues

“After having exhausted a significant portion of its reserves, RBI seems concerned about the burn rate of reserves and appears to be spending them very judiciously. This has resulted in the rupee adjusting and aligning itself with fundamentals and its peer group currencies,” IFA Global Research Academy’s note said.

The dollar index, which measures the strength of the US currency against a basket of six currencies, was trading at 0.02% at 112.81. Brent crude futures fell 0.87% to $97.07 per barrel.

Also Read | Sensex plunges over 826 points, Nifty falls by 249 points in early trade

The Sensex was trading 646.25 points or 1.11% lower at 57,545.04, while the Nifty fell 192.10 points or 1.11% to 17,122.55.

Foreign institutional investors (FIIs) have sold shares worth a net of Rs 2,250.77 crore, whereas domestic institutional investors (DIIs) purchased shares worth a net of Rs 545.25 crore on October 7, as per provisional data available on the NSE.