Rupee falls to a record low against the US dollar
The rupee weakened 16 paise to an all-time low of 82.33 against the US dollar in early trade on October 7, 2022, as a strong US currency and investor risk aversion weighed on the local unit.
Moreover, the negative trend in domestic stocks and increased oil prices dampened investor appetite, forex traders said.
At the interbank foreign exchange market, the rupee opened at 82.19 against the dollar before falling to 82.33, down 16 paise from its previous close.
On Thursday, the Indian currency closed below the 82 levels against the dollar for the first time. It fell 55 paise to close at a record low of 82.17 against the US currency.
“The rise in oil prices has seen trade deficit concerns resurface. A longer hold on US rates at higher levels does not help the capital account,” the IFA Global Research Academy said in a note.
In addition, the Reserve Bank of India (RBI) appears to have become conservative in spending reserves, it said, adding that these factors are causing the rupee to adjust.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was trading down 0.14 percent at 112.10. Global benchmark Brent crude futures fell 0.10% to $94.33 a barrel.
In the domestic stock market, the 30-share BSE Sensex was trading 111.83 points, or 0.19% lower, at 58,110.27, while the broader NSE Nifty was down 38.00 points, or 0.22%, at 17,293.80.
Foreign institutional investors were net buyers in the capital market on Thursday, buying shares worth Rs 279.01 crore, according to exchange data.