• Rupee drops 22 paise to an all-time low of 79.48 against the US dollar

    Business
    Rupee drops 22 paise to an all-time low of 79.48 against the US dollar

    The previous record low for the rupee against the US dollar was 79.38, which was recorded last week.


    Digital Desk: The rupee fell 22 paise against the US dollar on Monday, reaching a fresh record low of 79.48 (provisional) against the greenback, following a strong greenback overseas and depressed local equities.


    Although, Forex traders claimed that the rupee's loss was limited by the falling price of crude oil on the global market. 


    At the interbank foreign exchange market, the local currency opened weakly at 79.30 against the US dollar and had an intraday high of 79.24 and a low of 79.49.


    It eventually finished at 79.48 (provisional), declining 22 paise from its previous level of 79.26.


    The previous record low for the rupee against the US dollar was 79.38, which was recorded last week.


    The dollar index, which evaluates the dollar's strength against a basket of six different currencies, increased by 0.56 percent to 107.60.


    Due to selling pressure in the stock markets, the rupee has plummeted. The major indices of the Indian stock market, the Sensex and Nifty, declined on Monday due to intense selling pressure in the IT and telecom sectors. 


    Due to the weak Q1 results, Tata Consultancy Services (TCS) saw its share price fall by about 5%. At 3121.40, the stock was trading 4.39 percent down.


    The largest IT company, TCS, announced a net profit of $9,478 billion on Friday, up from the $9,008 billion it recorded for the same period last year. This is a gain of 5.21 percent year on year.


    The company's profit is far less than what the market anticipated. For the quarter that ended on June 30, the company's revenue increased 16.2 percent year on year to 52,758 crores.


    The benchmark for global oil, Brent crude futures, dropped 1.43 percent to $105.49 a barrel.


    As per the exchange data, foreign institutional investors sold shares worth 109.31 crores on Friday, making them net sellers in the capital market.


    Since the beginning of the month, foreign investors have withdrawn more than 4,000 crores due to the US dollar's steady rise and rising interest rates.


    However, over the past few weeks, foreign portfolio investors (FPIs) have been selling at a slower rate.


    The value of the Indian currency has been under pressure due to a growing trade deficit. India's trade imbalance increased to $25.63 billion in June, according to data recently issued by the Ministry of Commerce & Industry.


    The trade deficit increased to $70.25 billion during the first three months of the current fiscal year.


    Due to heavy imports, the nation's trade deficit has increased. India's merchandise imports for the months of April - June 2022–23 totaled $187.02 billion, up 47.31% from $126.96 billion in April-June 2021-22.


    India's exports of goods increased to $116.77 billion in the first quarter of the current fiscal year, up 22.22 percent from the $95.54 billion exported between April and June of the previous year.


    In June of this year, India's exports of goods increased by 16.8% to $37.9 billion, while imports surged by 51.02 percent to $63.58, resulting in a trade deficit of $25.63 billion for the month.