Rupee Hits Record Low of 78.32

On Thursday, the rupee concludes at its all-time low versus the dollar of 78.32, where it had previously closed the previous session.

On Thursday, the rupee closes provisionally at its all-time low versus the dollar of 78.32 after having closed there the day before.

This is consistent with a wider global risk asset decline brought on by recession fears.

Indian stocks recovered, but aggregate performance suggests that there would be more suffering in the future.

According to PTI, the rupee started out at 78.26 and ended up at its all-time low of 78.32, remaining constant from its previous closing.

The rupee fell by 19 paise on Wednesday, reaching an all-time low of 78.32 against the US dollar.

According to Dilip Parmar, Research Analyst at HDFC Securities, the Indian rupee lost its early morning gains as safe-haven buying pushed the dollar ahead of quarter-end revisions.

Mr. Parmar added that a near bounce is quite likely given the decline in commodity prices, the resilience of regional currencies, and the recovery in risk assets.

Spot USDINR is anticipated to trade in a constrained range between 78.10 and 78.50 before advancing to 79-odd levels, he continued.

With the index topping 8% for the year, the dollar increased in value versus a basket of foreign currencies, indicating both the general risk-off mood and the dollar’s Fed-driven yield advantage.

According to traders and economists cited by Reuters, the Reserve Bank of India’s involvement in the forward market, which has caused onshore 1-year forward premiums to drop to their lowest levels in more than a decade, might push the rupee to new lows.

The one-year annualised forward premium was 2.91 percent, up from its close on Wednesday of 2.82 percent. Its previous session low was 2.80 percent, its lowest point since November 25, 2011.

“The situation is really bad. There is dollar scarcity which is getting compounded by RBI taking delivery of maturing forward contracts,” the head of forex trading at a private bank told Reuters.