The exchange rate of rupee against the dollar fell by 58 paise on Monday and reached the lowest level ever at 81.67 (tentative). A firming US currency in global markets and risk aversion among investors weighed on the rupee. Forex traders said rising geopolitical tensions in Ukraine, a sharp fall in domestic equity markets and capital outflows by foreign institutional investors affected risk appetite among investors.
Rupee opened at 81.47
The rupee opened at 81.47 in the interbank foreign exchange market. Later it closed at an all-time low of 81.67, down 58 paise against Friday’s closing price. On Friday too, the rupee had closed at an all-time low at 81.09 against the US dollar. This was the fourth consecutive day when the rupee saw a fall against the US dollar. During this time the value of rupee has come down to 193 paise per dollar.
US currency declines as dollar strengthens
Dilip Parmar, Research Analyst, HDFC Securities, said, “The rupee continued to strengthen against the dollar due to a firming up of the US currency in overseas markets amid risk aversion among investors and policy rate hike by the US central bank Federal Reserve and fears of a slowdown. Meanwhile, the dollar index, which measures the strength of the dollar against the world’s six major currencies, climbed 0.46 per cent to 113.71. According to experts, investors will be eyeing the Reserve Bank of India (RBI) meeting this week. RBI will issue monetary policy review on September 30. The 38th meeting of the Monetary Policy Committee constituted under the Reserve Bank Act will be held from September 28 to 30.
Crude oil also fell
On the other hand, global oil standard Brent crude futures fell 0.70 percent to $ 85.55 per barrel. In the domestic stock markets, the BSE Sensex closed at 57,145.22, down 953.70 points or 1.64 percent. On the other hand, the NSE Nifty closed at 17,016.30, down 311.05 points, or 1.8 percent. Foreign institutional investors sold shares worth Rs 2,899.68 crore on Friday, according to stock market data.