Rupee vs dollar: Indian rupee hits life low on stronger dollar, slowdown worries
PremiumRupee vs dollar: Indian rupee hit new record low today as investors continue to favour dollar as ‘safe haven’
Rupee vs dollar: On account of rising dollar index and economic worries, Indian National Rupee (INR) weakened to a fresh record low of 79.41 against the US dollar (USD) on Monday as investors continue to favour greenback as safe-haven. In early morning deals, at the interbank foreign exchange, Indian rupee opened lower at 79.30 and went on to slide further breaching its previous record low of 79.37 levels. On Friday, the Indian rupee had made an all-time closing low of 79.26 against the US dollar.
The partially convertible rupee was trading at 79.38/39 per dollar by 0436 GMT, compared to its close of 79.25 on Friday. The unit had hit its previous life-low of 79.3750 last week.
On reasons that is pulling down rupee against dollar, Anuj Gupta, Vice President — Research at IIFL Securities said, “There is nothing wrong in the Indian economy. It is strong dollar due to hawkish US Fed in interest rate hike that has caught favour of investors as safe haven. As per the existing triggers, Indian Rupee may go down up to 80 top 80.50 levels and any dip in US dollar should be seen as buying opportunity by forex investors. Dollar index is around 107 and it has strong support at 104.80. Dollar index is facing strong hurdle at 107.50 levels and it may go up to 109 levels once it manages to breach its current resistance."
Anuj Gupta of IIFL Securities went on to add that current support for the Indian Rupee is placed at 78.80 levels.
After some profit-taking on Friday, dollar index bounced back strongly in early morning session on Monday. The dollar index, which gauges the greenback's strength against a basket of six currencies, gained 0.31 per cent to 107.34 in early morning session.
Domestic share markets were both down around 0.5% each. The BSE Sensex shed 300 points and quoted 54,180 mark whereas Nifty lost 63 points and hit 16,157 levels.
(With inputs from Reuters)