The rupee got off to a disappointing start this week, falling to a record low of about 79.40 per dollar as investors’ jitters about a global recession and conflicting mood in the crude markets bolstered the safe-haven greenback.

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The partially convertible rupee was quoted by Reuters at 79.38/39 per dollar, up from 79.25 on Friday. Last week, the currency hit a new all-time low of 79.3750.

The rupee slipped to 79.33 against the US dollar in early trade, down 7 paise from its previous close of 79.26, according to PTI.

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Anuj Gupta, Vice President Of Research at IIFL Securities, explained why the rupee is falling against the dollar, “There is nothing wrong in the Indian economy. It is a strong dollar due to the hawkish US Fed in an interest rate hike that has caught the favour of investors as safe haven. As per the existing triggers, Indian Rupee may go down up to 80 top 80.50 levels and any dip in the US dollar should be seen as buying opportunity by forex investors.”

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“The dollar index is around 107 and it has strong support at 104.80. The dollar index is facing a strong hurdle at 107.50 levels and it may go up to 109 levels once it manages to breach its current resistance,” he added.

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“The (dollar) could remain expensive until the risks around elevated global inflation, European energy security and China’s growth outlook have been resolved,” said analysts at Barclays.

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Oil prices dipped nearly $1 in choppy trade on Monday, erasing some gains from the prior session, as concerns about a recession and China’s COVID-19 restrictions hitting demand outweighed ongoing supply concerns.  

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Market sentiment will be driven by India and US inflation later this week, with a cautious tone anticipated before.

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Indian market benchmarks began the week on a sour note, halting three straight sessions of advances, as investors await domestic and international inflation data to clear the monetary policy outlook.