Rupee Plunges to All-time Low of 79.71 per US Dollar Today; Will it Breach 80 Soon?

The Indian rupee touched a record low for the fourth straight session on Thursday. The local currency opened trading at a lifetime low of 79.71 (provisional) per US dollar compared to its previous close of 79.63. The strengthening dollar after US inflation had rose to a record high in over 40 years and continuing outflow of foreign funds from the domestic market, have dragged rupee down.

“Amidst intra-day volatility, the dollar settled on a slightly weaker note at 107.83 with a loss of 0.14% on Wednesday. The USD-INR 27July futures contract ended positive at 79.71 with a gain of 0.05 per cent. The euro slipped to 0.99 for the first time since 2002 against the US dollar. We expect the dollar index to remain volatile in today’s session and continue to hold its key support level of 106.40 on a daily closing basis. On the other hand, the rupee slipped to lifetime lows on Wednesday. The euro is trading at 20-year lows, Japanese yen slipped to 27-year lows and other currencies are also struggling against the dollar. The rupee also plunged amid further weakness in the domestic equity markets and continuous FPI outflows. We expect the rupee to remain volatile this week and could hold its key support level of 80.05,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

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