Rupee falls to fresh all-time low amid strong dollar, persistent FII selling, risk aversion in global markets
时间:2024-06-26 07:52:18 阅读(143)
The Indian rupee fell to a new all-time low of 78.15 against the US dollar on Monday as it breached the 78-mark against the US dollar for the first time. The local currency began the day at 78.14 against the greenback, 30 paise lower from Friday’s close of 77.84. The elevated global crude oil prices, strengthening dollar and a continuous outflow of foreign funds from the local market, have kept the domestic currency under pressure for the last few sessions. Dollar gained strength amid the toxic mix of rising costs and slower growth. Meanwhile, the benchmark 10-year bond yield rose to its highest in more than three years as investor concerns over faster rate increases in the United States resurfaced following US inflation data.
“Weak global sentiments and weak Asian and European currencies have allowed the rupee to open below 78 after RBI ensured it did not cross 77.70. Have to watch RBI as to how it behaves in the next few days. Crude is below 120 which is just a bit of consolation as Chinese demand and recession prospects worry investors,” said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.
According to Amit Pabari, MD, CR Forex Advisors, after RBI and ECB monetary policies, this week will be watchful with the Big Boss Fed and BOE both expected to raise interest rates. Federal Reserve speech will mark centre importance for the anticipative markets and the further moves in the dollar index. On the domestic front, weaker fundamentals are weighing on the Indian rupee with Brent crude hovering near $120/bl, raising the concerns of the widening trade deficit while the rising US interest rates is leading to concerns of further capital outflows and BOP crisis.
“Its a tough task for the RBI to actively manage the current volatility that is influenced by the risk-sensitive global environment, although it has run the show smoothly by effectively using its accumulated $600bn reserves and allowing the rupee to depreciate steadily. Today’s RBI action will be closely watchful near 78.20-30 levels to understand its comfort levels. Overall, it is historically seen, that whenever the rupee breaks its all-time high, it typically moves by 1 to 1.5 rupee. However, this time as the key level of 77.80 is broken in the USDINR pair, RBI might not allow the pair to move higher sharply and we expect the rupee to trade between 77.80 -78.50 in the short to medium term, “Pabari said.
上一篇:Diesel sales fall in June as monsoon sets in
下一篇:Women-led development, by India’s women-led enterprises – a key piece of $5 trillion goal
猜你喜欢
- Dollar remains subdued ahead of New Year holidays
- Dharmaj Crop Guard IPO opens for subscription, GMP rises; should you apply for the issue-
- Muthoot Microfin lists at a discount of over 6% from the IPO price
- Nifty could be inching towards 18400-18600 for new all-time high; ICICI Bank, Asian Paints top bets
- Departure of grounded Romanian plane with Indian passengers from French airport delayed- Reports
- DroneAcharya Aerial first makes stock market debut
- Nifty could top 17900 above 17750, Bank Nifty may hit 41000 if it closes above 39500; here’s what analysts say
- NSE F&O Ban- Delta Corp, GNFC, India Cements, ZEEL, other stocks under ban on August 16, Wednesday
- NASA’s Artemis Moon Mission to land humans on moon delays to September 2026