Early trading sees historic lows for the Indian rupee

29 Jun 2022 , 10:33 AM

In the first hour of trading on Wednesday (29-06-2022), the rupee lost 11 paisas, falling to a new low of 78.96 versus the US dollar. This decline was caused by an ongoing capital flight from India.

The rupee depreciated 11 paise from the previous close to quote at 78.96, its all-time low, at the interbank foreign exchange, after beginning on a shaky note at 78.86 versus the American dollar.

To reach a record low of 78.85 versus the US dollar on Tuesday, the rupee fell by 48 paise. According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the rupee started off Wednesday’s trading session down versus the dollar as the dismal economic outlook came back into the spotlight.

Iyer said that the rupee’s range on Wednesday is 78.50-79.10. “The Reserve Bank of India (RBI) might be present to contain volatility, but the strength of crude oil could cap appreciating bias,” he added. The rupee has depreciated a startling 6.28 percent since the beginning of this year, down 1.87 percent so far this month.

Benchmark Brent crude futures for world oil decreased by 0.88 percent to USD 116.94 per barrel. The dollar index, which measures the value of the dollar against a basket of six different currencies, was trading 0.8% down at 104.42.