Rupee drops to an all-time low of 79.97 against US dollar

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• Jul 18, 2022 | Dhupali Das

The Indian rupee reversed significant gains earlier in the morning and began to slide toward 80 per...

Digital Desk: The rupee plummeted to a new all-time low on Monday, reversing significant gains earlier in the day, even as risk assets climbed widely as the dollar hovered near multi-year highs and crude prices remained muted below $100 per barrel.

As per Bloomberg, the rupee hit a new intra-day low of 79.9825 on Monday and was last changing hands at 79.9775, a lifetime low. 

Reportedly, the rupee falls 15 paise to close at 79.97 against the US dollar provisionally.

The rupee recovered from near-80 levels on Friday, after hitting a record low of 79.99 the previous session, to gain 17 paise to 79.82 per dollar.

The Indian rupee reversed significant gains earlier in the morning and began to slide toward 80 per dollar amid concerns over continued FX outflows.

Reports claimed that last week some banks, including the State Bank of India, were already asking 80 rupees for a dollar for currency exchange.

The rupee has been harmed by foreign investors leaving Indian equities and other assets in favour of assets denominated in dollars, which is part of a larger worldwide trend.

In fact, the most recent stock exchange data revealed that foreign institutional investors (FIIs) continued to be net sellers in the Indian capital markets on Friday, unloading shares worth 1,649.36 crores.

While concerns over capital outflows weighed on the rupee, traders anticipated strong action from the Reserve Bank of India to prevent the rupee from breaching its next important psychological milestone of 80 to the dollar as long as possible.

But after the initial gain, the rupee began to fall and eventually settled just below that significant psychological threshold.