Rupee weakens sharply to 79.66 per dollar, falls to record low

Rupee weakens sharply to 79.66 per dollar, falls to record low

Rupee weakens above 79.65 per dollar

The rupee weakened sharply on Monday as solid US jobs data raised hopes of further tightening of the Federal Reserve’s policy.

On Friday, Bloomberg placed the rupee at 79.6550 per dollar, down by about 42 paise from the level of 79.2413.

The rupee fell by 40 paise to provisionally close at 79.64 against the US dollar, PTI reported.

The domestic currency opened weak at 79.50 per dollar in the interbank foreign exchange market. It ranged between a high of 79.45 and a low of 79.65 during the session. According to PTI, it finally closed at 79.64, down 40 paise from its previous close of 79.24.

The rupee on Friday closed 0.54 per cent lower at 79.66 per dollar after a short-term bump, which saw the currency rise 50 basis points from the Reserve Bank of India, Reuters reported.

“The rupee was under constant pressure during today’s session. Initially, due to dollar crunch by speculators and later by importers,” a trader at a Mumbai-based private sector bank told Reuters. “There was an overall reluctance to risk an extra day.”

Blockbuster US jobs growth prompted markets to move faster and there is a nearly 70 percent chance the Federal Reserve will hike rates by 75 basis points in September, pushing two-year yields 20 basis points further on Friday. .

That risk haunted the world equity markets.

But Indian stocks defied that global trend and fell below $95 a barrel on Monday with strong capital inflows and a cooling in oil prices.

Indian financial markets will remain closed on Tuesday.


Indian Lekhak

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