The rupee on Thursday closed at its lowest level of 78.32 against the US dollar as the US dollar and the ongoing exit from the exiting fund weigh heavily on investors’ sentiment.
In the foreign exchange market, the local currency opened up at 78.26 and rose to 78.22 due to the weakness of the US dollar and crude oil in the initial trade.
However, the greenback and Brent crude recurrence later hit the rupee, bringing the local currency to below 78.38. The rupee eventually remains unchanged at 78.32, its record low compared to the US dollar.
The dollar weakened at the start of the Asian session after a US Federal Reserve chairman called for a possible economic downturn as the US central bank raises interest rates to cool inflation.
The rupee has removed the morning benefits as the need for a safe haven accelerated the greenback before the end of the quarter, said Dilip Parmar, Research Analyst, HDFC Securities.
Parmar went on to say that there is a strong possibility that it will depend on commodities, regional financial strength, and the acquisition of risky assets.
“The USDINR Spot is expected to be at a low level of 78.10 to 78.50 before going to 79 odd levels,” Parmar said.