Rupee reaches record low against US dollar

Delhi Delhi. The rupee dropped 17 paise to close at a two-month low of 83.61 (provisional) against the US dollar on Thursday amid a surge in crude oil prices due to escalation in geopolitical tensions in the Middle East, even as domestic stock markets hit new peaks. According to forex traders, foreign capital inflows and positive momentum in domestic stock markets could not support the local unit, which came under pressure due to a stronger American currency against key rivals overseas. The local unit opened at 83.43 at the interbank foreign exchange market and touched an intra-day high of 83.42 against the dollar. During the session, the currency hit an all-time low of 83.68 against the dollar. The rupee finally closed at 83.61 (provisional) against the dollar, registering a massive fall of 17 paise from its previous close. On Wednesday, the rupee had closed 1 paisa lower at 83.44 against the US dollar.

Earlier, the domestic currency had closed at 83.61 against the dollar on April 16 this year. Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas, said the rupee declined due to a strong US dollar and weak Asian markets. “Traders can take cues from weekly unemployment claims, building permits, Philly Fed manufacturing index, housing starts and current account data from the US. The USD-INR spot price is expected to trade in the range of Rs 83.30 to Rs 83.80,” Chaudhary said. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.21 per cent higher at 105.10. The strength in the US dollar is attributed to geopolitical tensions as Russia has resumed airstrikes on Ukraine’s power grid and Kiev’s army has again targeted Russian oil facilities with cross-border drone attacks.