Rupee Slides Past 82 Per US Dollar Mark To Reach New All-Time Low Mark Of 82.33

Ever since the Ukraine-Russia war began in February, worrying times just don't seem to be ending for the Indian currency rupee as it has breached new all-time low levels multiple times over the past 7-8 months.

And today is no exception, as the rupee depreciated 16 paise to an all-time low of 82.33 against the U.S. dollar in early trade, as a firm American currency and risk-averse sentiment among investors weighed on the Indian currency. The rupee dropped to 82.33 within the first ten minutes of opening today and has been range-bound since, likely due to the RBI intervention.

At the time of writing this report, the rupee had fallen to 82.40 vs the US dollar. Now it remains to be seen whether it falls further or manages to recover when it closes today.

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Moreover, a negative trend in domestic equities and elevated crude oil prices sapped investor appetite, forex traders said, as per the PTI report.

At the interbank foreign exchange, the rupee opened at 82.19 against the greenback, then fell to 82.33, registering a fall of 16 paisa over its previous close.

Yesterday, the Indian currency, for the first time, closed below the 82 level against the US dollar. It plunged 55 paisas to close at a record low of 82.17 against the U.S. dollar.

RBI Intervening By Selling Dollars

As per Reuters report, the RBI is likely to have sold dollars via state-run banks today, i.e. Friday, after the rupee slid below 82 to a record low against the dollar on concerns over the U.S. Federal Reserve rate outlook. The intervention by the RBI was confirmed by four bankers and a brokerage firm.

"Basically, the RBI is making its presence felt and letting traders know once again that it will not allow one-sided moves," said one of the state-run bankers who confirmed the intervention.

"The intervention will have an impact to (the extent) that it will not allow the rupee to fall more, but will not help rupee recover by much."

"An uptick in crude prices has caused concerns around the trade deficit to resurface. U.S. rates staying higher for longer is not helping the capital account," IFA Global Research Academy said in a note, as per PTI.

Also Read: RBI Allows International Trade Settlements In Rupee

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Moreover, the Reserve Bank of India reportedly seems to have become conservative in spending reserves, it said, adding that these factors are causing the rupee to adjust.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.14% lower at 112.10. The global benchmark Brent crude futures fell 0.10% to $94.33 per barrel, the report mentioned.

Also Read: Did You Know About India's Rs 10,000 Rupee Note

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