Rupee falls 11 paise to close at all-time low of 83.62 against U.S. dollar
The Hindu
Rupee hits all-time low at 83.62 against USD, influenced by strong dollar, high inflation, and foreign fund inflows.
Rupee depreciated 11 paise and settled for the day at an all-time low of 83.62 (provisional) against the U.S. dollar on July 15, weighed down by the overall strength of the American currency in the overseas market.
Forex traders said a positive trend in domestic equities, wherein benchmark indices touched all-time high levels and significant foreign fund inflows supported the Rupee at lower levels.
At the interbank foreign exchange market, the local unit opened at 83.53, but lost ground and finally settled at an all-time low of 83.62 (provisional) against the dollar, 11 paise lower than its previous close. On July 12, the Rupee settled at 83.51 against the U.S. dollar.
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the Rupee declined on positive U.S. dollar and rising domestic inflation.
“U.S. dollar rose on safe haven demand amid political violence in the U.S.,” he said, adding that rising odds of a rate cut by Fed in September may limit a sharp upside in the greenback.
"Traders may take cues from Empire State manufacturing index data from the U.S.. USD-INR spot price is expected to trade in a range of ₹83.30 to ₹83.80," Mr. Choudhary said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading marginally lower by 0.02% at 104.07. Brent crude futures, the global oil benchmark, were trading 0.09% higher at $85.11 per barrel.