RUPEE FALLS DOWN TO LOWEST LEVEL AGAINST US DOLLAR

New Delhi (The Quiver): On Friday, The value of rupee fell to an all-time low against the US dollar .This is for the first time that Rupee touched a new low of 79.11 in opening trade today.The domestic unit continued to take a hit for the sixth straight session .

On the interbank forex market on Friday, the rupee opened 5 paise lower at 79.11 against the American currency, PTI reported.

Interest rate increases by the Reserve Bank of India to curb inflationary pressures and the sustained high global crude oil prices also weighed on bonds and the rupee.

The rupee weakened 4.2 per cent in the June quarter, its biggest loss since the March quarter of 2020 when the pandemic hit, according to a Reuters report.

As reported by Reuters,The spike in global crude oil prices in the aftermath of Russia’s invasion of Ukraine has pushed up global commodity prices and inflation. With India importing more than two-thirds is of its oil requirements, the country’s trade and fiscal deficits are expected to widen this year and that has also hurt the rupee.

“While RBI’s active use of FX Reserves has curbed volatility, depreciation pressures continue to persist on account of a multitude of global factors as well as few domestic ones,” analysts at QuantEco Research wrote in a note.