Currency Buzz: INR Hits Fresh Record Low; Slides Beyond 78/$

13 Jun 2022 , 11:36 AM

Accruing strength in the American currency after soaring inflation levels are paving way for more aggressive monetary tightening by Fed is seen weighing down most of the currencies across the globe. The Indian rupee is not spared either that broke sharply lower to hit fresh record lows beyond Rs 78 per dollar mark. The dollar is seen extending gains near a one-month high on Monday as consumer prices in the U.S. shot up by more than expected 1.0 percent in May after rising by 0.3 percent in April. With the bigger than expected monthly increase, the annual rate of consumer price growth accelerated to 8.6 percent in May from 8.3 percent in April, showing the biggest surge since December 1981. The dollar index, that measures the greenback against a basket of currencies is hovering at 104.35. The domestic equity barometers too continued to trade with deep cuts in mid-morning trade. At 11:21 IST, the barometer index, the S&P BSE Sensex, was down 1376.11 points or 2.53% to 52,927.33. The Nifty 50 index tumbled 382.65 points or 2.36% to 15,819.15. Global cues were weak as investors shunned risky assets on worries that aggressive interest rate hikes by global central banks would stifle economic growth. Powered by Commodity Insights