Rupee depreciates to another record low, trading at just under 80 per dollar

On Monday, the rupee plunged to a fresh record low, undoing significant gains made earlier in the session even as risk assets rose widely.

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On Monday, the rupee plunged to a fresh record low, undoing strong gains made earlier in the session. At the same time, risk assets generally appreciated as the dollar maintained at multi-year highs and crude oil prices declined below $100 per barrel.

The rupee struck a new intra-day record low of 79.9825 on Monday, according to Bloomberg, and was last traded at 79.9775, which is a lifetime low.

According to PTI, the rupee depreciates 15 paisas to provisionally close at 79.97 versus the US dollar.

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The rupee gained 17 paise to 79.82 per dollar on Friday after falling to record lows of 79.99 and near-80 levels the day before, according to PTI.

On concerns over ongoing FX outflows, the Indian rupee reversed significant gains from earlier in the session and began to slip toward 80 per dollar.

Last week, news organisations reported that some banks, including the State Bank of India, were already charging 80 rupees for every dollar when exchanging currencies.

The rupee has been harmed by foreign investors leaving Indian equities and other assets in favour of assets denominated in dollars, which is part of a larger worldwide trend.

Indeed, according to the most recent stock exchange data, foreign institutional investors (FIIs) continued to sell shares worth 1,649.36 crore on Friday in the Indian capital markets, remaining net sellers.

While concerns over capital outflows weighed on the rupee, traders anticipated vigorous intervention from the Reserve Bank of India to prevent the rupee from breaching its next important psychological milestone of 80 to the dollar as long as possible.

But after initial gains, the rupee began to fall and eventually settled just below that significant psychological threshold.