Rupee declines by 41 paisa to 79.36/$

6 Jul 2022 , 01:05 PM

After the trade imbalance reached a record high in June, the rupee’s value against the US dollar plunged to a new low on Tuesday (05-07-2022) as investor mood became negative.

On Tuesday, the rupee fell 0.5% to end the day at a new low of 79.36 per US dollar. The rupee’s last closing low occurred on July 1 at 79.04 to the US dollar. The rupee’s problems have been made worse by unabated withdrawals of foreign investment from Indian equities markets. Given the unfavorable prognosis for the current account amid high oil prices, dealers expect further deterioration for the currency in the future.

The INR might drop in the following months, with USD/INR reaching 82 by Q3 2022 and 81 by Q4 2022, according to a note from Nomura. “We expect numerous headwinds, including deteriorating India BoP dynamics, aggressive Fed rates, and growing US recession risks,” the report stated.