The rupee gathered momentum as the rupee depreciated towards $80 a dollar, with the currency closing a new all-time weak of 79.81, marking the third straight session of record lows even before data showed US inflation hitting 40-year lows. exceeded the expectation. peak.
That inflation print will boost an already massive dollar on a sizable interest rate hike from the Federal Reserve later this month, which includes an even more aggressive policy tightening route, and in turn, propels the economy into recession. Will push
The rupee fell 22 paise to close at a new all-time low of 79.81 against the US dollar, PTI reported. It is just a whisker away from the next major psychological level of the 80-to-dollar rate.
The rupee was last turning around at 79.6350 per dollar, after falling to an intra-day low of 79.6825, showing that the rupee was last turning around the 80 mark, Bloomberg showed.
While the currency heaved a sigh of relief in the first session when crude oil prices crashed below $100 a barrel, a reversal in energy prices above that level on demand concerns from a global slowdown weighed the rupee.
The rupee had tracked a generally upbeat mood in Asia trading hours this morning and domestic stocks opened in a positive tone, but the risk story for global financial markets remained ahead of the much-awaited June US inflation report, which is likely to reach 40 per cent. The year had intensified. peak.
Global stocks, including Indian equity benchmarks, slid on Wednesday and the euro remained above par against the dollar as traders waited to see if US inflation data would clear the case for another supersized Federal Reserve rate hike later this month. strengthen.
In the previous session, the rupee had closed at 79.59 against the greenback as a safe-haven stampede in dollar-denominated assets ripped apart almost every other currency.