The domestic currency rupee hit a record low in Tuesday’s session (May 17, 2022) at $ 77.80 per US dollar. The currency last around noon. 12:25 (IST) is trading with a change of 0.205 to 77.655. The day before, the currency closed at 77.45 per US dollar. In today’s session, it opened still lower at 77.69.
Overall, the appreciation of the US dollar along with the weakness of the offshore markets weigh on the domestic unit.
According to traders quoted in leading business dailies, the weak economic data from China triggered fears of global recession, eroding appetite for more risky emerging market currencies.
Meanwhile, Indian stocks are seen gaining strength, with Nifty at the time of writing adding 1.8% to 16,129.
“The rupee fell to a record low as a wider strength of the dollar continued, and also as global crude oil prices continued to trade higher. Last week’s inflation figures released on the domestic front and from the US came in higher, disrupting the overall market sentiment. We expects the momentum for USDINR to remain positive, citing in the range of 77.40 and 78.20 “, as expressed by Mr. Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services on rupee hitting a record low level.
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The story was first published: Tuesday, May 17, 2022, 12:42 p.m. [IST]