Rupee drops 39 paise to a brand-new all-time low of 82.69 versus the US dollar in early trade.
The rupee depreciated by 39 paise over its previous level at the interbank foreign exchange, starting at 82.68 to the dollar before falling further to 82.69.
In early trade on Monday, the rupee lost 39 paisa, falling to an all-time low of 82.69 against the US dollar as high crude oil prices and investor aversion to risk hurt the local currency. Additionally, dealers for forex indicated that a downward trend in domestic equities and a strong dollar sapped investor interest. The rupee depreciated by 39 paisa over its previous level at the interbank foreign exchange, starting at 82.68 to the dollar before falling further to 82.69. The rupee lost another 13 paisa on Friday, reaching a new closing low of 82.30 against the US dollar.
The rupee is once again being haunted by the double whammy of rising US rates and rising crude prices. While the RBI was able to successfully defend the rupee during the previous cycle of simultaneous stress on the current and capital accounts by using its reserves, things are likely to be different this time around, according to a note from the IFA Global Research Academy.
The Reserve Bank reported on Friday that India's foreign exchange holdings decreased by USD 4.854 billion to USD 532.664 billion as of September 30. The reserves, which have been declining as the central bank uses its funds to protect the rupee from pressures mostly brought on by global events, had decreased by more than USD 8.134 billion to USD 537.518 billion in the previous reporting week.