Today the rupee crossed the level of 77.40 against the dollar for the first time. Today it has weakened by about 52 paise against the dollar.
Rupee on Record Low: Today i.e. on May 9, the rupee has come down to the lowest level ever. Today the rupee crossed the level of 77.40 against the dollar for the first time. Today it has weakened by about 52 paise against the dollar. The rupee had closed at 76.90 per dollar on its first trading day. Whereas today it has reached the level of 77.42. The fall in the global equity market, inflation, selling of foreign funds and strengthening of the dollar has led to the fall in the rupee.
Rupee weakens 4 per cent this year
Talking about this year, there has been a weakness of about 4 percent in the rupee. At the same time, 1 percent is broken even in a week. In today’s trade, the rupee opened at a level of 77.17 against the US dollar and then declined to 77.42. The rupee had closed 55 paise lower at 76.90 against the US dollar on Friday.
Dollar index at 104.02
Forex traders said investors are reluctant to take risk due to rising inflation concerns. Meanwhile, the position of the US dollar has strengthened against 6 major currencies. The dollar index rose 0.35 percent to 104.02. On the other hand, Brent crude futures have risen by 0.14 percent to $ 112.55 per barrel today. As a result, the inflation rate remains at a high level. Let us inform that foreign institutional investors had sold shares worth a net Rs 5,517.08 crore on Friday, which has affected the currency.
Other Factors
At present, the equity market is also being affected due to the rate hike cycle. RBI has recently increased the repo rate by 0.40 percent. At the same time, the US Fed has also increased interest rates by half a percent. It is being said that rates can be increased several times in order to control inflation. The 10-year bond yield in India stands at 7.484 per cent.
