Rupee falls to all-time low of 80.15 against the US dollar in early trading
The rupee depreciated 31 paise to an all-time low of 80.15 against the US dollar in early trading on Monday, following strength in the US currency and strength in crude oil prices.
On the interbank exchange, the rupee opened at 80.10 against the dollar, then lost ground to quote at 80.15, registering a drop of 31 paise since the last close.
On Friday, the rupiah closed at 79.84 against the dollar.
Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, was trading up 0.51% at 109.35.
Forex traders said the dollar index gained after Federal Reserve Chairman Jerome Powell adopted a hawkish tone to fight inflation.
According to Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors, the rupiah opened on a weak note after a hawkish Powell kept US rate hikes in focus until inflation fell to 2%.
“With 80 being allowed to cross by RBI, its actions will be watched closely by traders. The next important events are the US PMI and NFPR, which will give an indication of how the economy and markets labor behave,” Bhansali said.
Brent futures, the global oil benchmark, rose 0.86% to $101.86 a barrel.
On the domestic stock market front, the 30-stock Sensex traded 966.68 points or 1.64% lower at 57,867.19, while the broader NSE Nifty fell 283.90 points or 1. .62% at 17,275.00.
Foreign institutional investors were net sellers in the capital market on Friday as they unloaded shares worth Rs 51.12 crore, according to stock market data.