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The rupee hit fresh lows during intraday deals as it touched 77.80 against the dollar as risk-averse investors continue to pull out from emerging markets amid surging crude oil prices.
After a flat opening, the Indian currency hit 77.80 per dollar as compared to the previous close of 77.74 per dollar — which was an all-time closing low.
“Sword is still hanging on rupee amid persistent FII’s selling from EM’s leading to Asain currencies weakening, elevated oil prices, and revised upward inflationary pressure for coming quarters,” said Amit Pabari, managing director, CR Forex.
The Indian currency came under pressure after the US Federal Reserve started to tighten monetary policy to tackle high inflation. All major global currencies are facing inflationary pressure due to supply-side issues and a surge in oil prices following the Russian invasion of Ukraine in late February.
The rupee depreciated by over 2.5 per cent in the current financial year. The central bank has been intervening aggressively which slowed the pace of rupee’s depreciation.
“The only ray of hope for rupee presently will remain RBI who has actively and aggressively participated to protect rupee from the heat so far,” Pabari said.
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