India
Rupee closes at 78.05 a Dollar, a new all-time low for 2nd consecutive session
New Delhi: The rupee closed at a new all-time low of 78.13 against the dollar after hitting a record weak intra-day level of 78.29 earlier on Monday.
This marks a new lifetime low closing for the currency for the second straight session. Indeed, on Friday, the currency closed at its previous weakest level of 77.93 to the dollar, a report by NDTV said.
The rupee had another rough day, falling 20 paise to close at a fresh record low of 78.13 against US dollar.
Earlier in the session, the rupee breached the 78 per dollar mark for the first time ever and hit a fresh record low of 78.28 to the dollar, while the benchmark 10-year bond yield touched 7.60 per cent, its highest since February 28, 2019.
That fall was driven by increased flight-to-safety bets as a sharper jump in US inflation raised concern over the Federal Reserve resorting to steeper rate increases, the report said.
Soaring food and energy prices drove the largest year-on-year gain in US consumer prices since 1981 last month, against an expectation for inflation to begin slowing down.
The safe haven dollar gained towards fresh two-decade highs versus major rival currencies on Monday, supported by fears over a global economic slowdown and bets on steep interest rate hikes by the US Federal Reserve.
The yen was among a host of currencies swept lower on the day, to its lowest level versus the dollar since 1998, on interest rate differential expectations.
Forex traders said weak Asian currencies and persistent foreign capital outflows were the other major factors that dragged the local unit down.
“The Indian rupee, taking cues from weaker regional currencies plummeted to a life low. The dollar extended gains on Monday as US 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 at HDFC Securities, told PTI.
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