The rate of the Rupee against the Dollar has always been a topic of discussion. On Tuesday, the Indian rupee opened with a drop and hit the lowest record.
How much did the rupee drop?
The rupee slipped to a lifetime low of 83.5350 against the U.S. dollar. In early Tuesday trade, it depreciated 9 paise to 83.53, weighed down by a strong American currency.
On Monday, the rupee declined 6 paise to settle at 83.44 against the US dollar. It is reported that the 10-year U.S. yield on Monday climbed to the highest since mid-November. The dollar rose against its major peers.
Additionally, according to interbank foreign exchange, the rupee opened at 83.51 the next day against the dollar and touched a low of 83.53 in the initial trade, registering a fall of 9 paise over its previous close.
The rise in U.S. Treasury yields pegged Asian currencies and equities back. These yields bet that the Federal Reserve will delay rate cuts and on simmering worries that the situation in the Middle East could worsen.
On the domestic equity market, the 30-share BSE Sensex was trading 307.44 points, or 0.42 per cent lower at 73,092.34 points. The broader NSE Nifty was down 76.50 points, or 0.34 per cent, to 22,196.00 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth ₹3,268.00 crore, according to exchange data.
The dollar index was at its highest in nearly six months. Asian currencies dropped, with the Korean won and the Indonesian rupiah leading the way. Racking losses in Asian peers on concerns over a wider Middle East conflict and expectations that the Federal Reserve will wait longer to cut interest rates.
The Reserve Bank of India likely intervened via state-run banks to curb the rupee’s decline, traders said. The rupee would have declined “way more” if the RBI had not intervened.