Rupee dips to an all time low

On Monday, the rupee depreciated against the US dollar for the fourth straight session, ending the day 58 paise weaker at 81.67 – an all-time low- due to the strengthening of the US dollar abroad. The rupee dropped 30 paise on Friday, reaching a record low near 81.0. The Indian currency has now lost 193 paise in relation to the American dollar for the fourth consecutive session. According to analysts, the rupee would continue to depreciate this week, reaching as high as 82.

Investor interest was dampened by the escalating geopolitical dangers brought on by the situation in Ukraine, a downward trend in local equities, and large outflows of foreign funds, according to FX traders.

According to Dilip Parmar, research analyst, HDFC Securities, spot USD-INR is currently experiencing resistance at about 82 and support at 81.05. In the near term, Parmar added, spot USD-INR may move towards 82 as the dollar index strength and rising bond yields continue. The dollar index, which measures the strength of the dollar against a basket of six different currencies, increased 0.46 percent to 113.71.