Rupee trades above 80 per Dollar, breaks another record low

Early on Thursday, the rupee plunged to yet another record low of more than 80 to the dollar.

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The rupee plunged to yet another record low against the dollar early on Thursday, reflecting a decline in the dollar and the exhaustion of the recent rally in Asian shares.

The approaching central bank meetings in Europe and Japan as well as the uncertainties surrounding the supply of Russian gas kept investors on edge.

According to PTI, in early trade, the rupee dropped one paise to an all-time low of 80.06 against the US dollar.

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Following a worse start at 80.0100 from the previous finish of 79.9888, Bloomberg quoted the rupee at 80.0225.

According to Bloomberg, the rupee traded in the range of 80.0013 to 80.0638, which is the first time it has ever gone above 80 to the dollar.

According to Reuters, the Indian rupee declined at market open on Thursday and was trading slightly above its all-time low set earlier this week. It also tracked down in the majority of its Asian counterparts.

The partially convertible rupee was trading at 80.01/02 per dollar, close to its record low of 80.0650 reached on Tuesday, and up from its closing of 79.99 on Wednesday.

The main concern right now, however, is that the decline from this point can be even steeper, since betting on a free fall following a break of a major psychological rate increases, as we have seen since the rupee dropped beyond the rate of 77 to the dollar.

However, traders anticipate the central bank’s action to reduce losses by selling dollars.

Investors will keep an eye on the central bank after a source claimed that the RBI was prepared to sell an additional $100 billion in order to protect the rupee from sharp declines.

The demand for dollars from oil importers is harming the currency.

Additionally, the growing trade and current account deficits impacted investor confidence.

The rupee dropped under the 80 mark, according to Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors, as oil buying continues to hurt the local currency.