All section Close
At 77.43, Indian Rupee Falls To Record Low On US Dollar Strength
Writer: Yukta Baid
She is a postgraduate student of Journalism at SIMC Pune, passionate about exploring and reporting different beats with an objective view. Keen interest in, but not limited to, lifestyle and culture. I hold a triple major in English, Psychology, and Journalism. It's always easier to find stories over a cup of coffee.
India, 9 May 2022 10:15 AM GMT | Updated 9 May 2022 10:44 AM GMT
Editor : Shiva Chaudhary |
A post-graduate in Journalism and Mass Communication with relevant skills, specialising in content editing & writing. I believe in the precise dissemination of information based on facts to the public.
Creatives : Shiva Chaudhary
A post-graduate in Journalism and Mass Communication with relevant skills, specialising in content editing & writing. I believe in the precise dissemination of information based on facts to the public.
The official currency of India opened at 76.92 against the US dollar, which plummeted 51 paise to 77.43 in the early hours of the day. The Rupee has last seen a record low of 76.98 on March 7, 2022.
The Rupee has tanked to an all-time low of 77.43 (fluctuating) against the US dollar on May 9, 2022, amid increasing fears of rising crude oil prices, interest rate hikes, and inflation among the investors, with added impact of risk aversion in foreign investors on domestic stocks.
All Time Low
The official currency of India, the Rupee, opened at 76.92 against the US dollar, which plummeted 51 paise to 77.43 in the early hours of the day. The Rupee has last seen a record low of 76.98 on March 7, 2022.
At the same time, the US Dollar index, which measures the value of the dollar against six major currencies, saw a rise of 19 points as it reached 103.98, as reported by Business Insider.
Higher Market Rates
The Federal Reserve in the USA hiked the standard interest rates by 50 points and hinted at more rate increases to guide high inflation rates.
The Reserve Bank of India's move to hike the interest rate last week was to strengthen the Rupee, with a broader rate difference with the US. Still, dealers believe that it could also result in a stock market sell-off due to pressure on the weakening rupee, as reported by The Economic Times.
Fear In Investors
In a note to investors, Edelweiss Wealth Research said that a widening trade deficit and increased outflows could pressure the Rupee further with the Federal Reserve's move to raise interest rates. It could lead to a sudden outflow of foreign investors from domestic capital, as reported by Money Control.
The Rupee has worsened since the ongoing Russia-Ukraine crisis, as it has resulted in higher crude oil prices for a steady three months due to supply disruptions. There is also a fear of fluctuations in growth in Asian markets as Shanghai has made its Covid lockdowns stricter, which has impacted investor behaviour concerning stocks.
Also Read: Amid Ukraine Crisis, Rupee Slumps 84 Paise To Lifetime Low Of 77.01 Against US Dollar
Must Reads
We are an independent and public-spirited digital media platform for Indian millennials. We report news and issues that matter as well as give you the opportunity to take action.
