Rupee Drops 9 Paise To Settle At a Record Low Of 83.22 Against The US Dollar

On Thursday, the rupee fell against the US dollar for the fourth straight day, ending the day 9 paise down at a lifetime low of 83.22 (provisional). This happened despite a strong US dollar and rising crude oil prices.

However, according to FX traders, the rupee was given some support by the uptick in domestic equity markets.

After oil-producing nations agreed to extend supply cuts until December of this year, crude oil crossed the USD 90 per barrel threshold, and the dollar held steady due to demand for safe-haven assets.

The native currency at the interbank foreign exchange started trading at 83.15 versus the dollar and fluctuated between 83.12 and 83.22. It lost 9 paise from its previous closing to conclude at the lowest level of 83.22 (provisional) against the dollar.

The rupee ended the day on Wednesday 9 paise weaker at 83.13 against the dollar. Previously, on August 21, the Indian rupee had ended the day at the same price of 83.13.

The native currency has lost 60 paisa since closing at 82.71 versus the US dollar on Monday, down 9 paisa. The unit experienced its steepest decline this week on Tuesday, falling 33 paise.

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“Due to the strong dollar and high crude oil prices, we anticipate that the rupee will trade with a negative bias.

Depressing European data could strengthen the dollar even further. The rupee may also be affected by rising US Treasury yields and worries over global economic development, according to Anuj Choudhary, a research analyst at Sharekhan by BNP Paribas.