Indian currency hits record low against USD - South Asia Time

Indian currency hits record low against USD

 October 20, 2022  

New Delhi — The rupee depreciated 6 paise to a record low of 83.06 against the US dollar in opening trade on Thursday due to a stronger greenback overseas and unrelenting foreign fund outflows, zeebiz reported.

Besides, a sell-off in domestic equities and risk-averse sentiments weighed on the local unit, forex traders said.

At the interbank foreign exchange, the domestic unit opened weak at 83.05 against the dollar, then slipped further to quote 83.06, a fall of 6 paise over its previous close. The local currency also hit a high of 83.07 in early deals.

In the previous session on Wednesday, the rupee plunged 60 paise to end at 83 against the dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.07 per cent to 113.06.

Brent crude futures, the global oil benchmark, slipped 0.17 per cent to USD 92.25 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 140.09 points or 0.24 per cent lower at 58,967.10. Similarly, the broader NSE Nifty fell 43.95 points or 0.25 per cent to 17,468.30.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets as they offloaded shares worth Rs 453.91 crore on Wednesday, according to exchange data.

The domestic currency hit a new all-time low of 82.9450 after risk assets reversed recent gains and fell as data revealed that skyrocketing food costs had sent British inflation back to a 40-year high of 10.1 per cent, piling pressure on the Bank of England to hike rates aggressively.

On Wednesday, global stocks, which have risen in recent sessions, were slightly lower as investors’ sentiment was conflicted between positive corporate earnings results and fears of persistently high inflation leading to more aggressive policy tightening.(Agencies )