Rupee Today: Rupee hits fresh record low against dollar. Here’s what analysts have to say

The partially convertible rupee was trading at 78.94/95 per dollar. The currency had closed at 78.77 on Tuesday.

“As the equity markets decided that the downturn was not good for stocks, after all, the dollar index managed to open almost all of last week’s retracement in just one session. The dollar-yen exchange rate was above 136 this morning, and Jeffrey Haley, Senior Market Analyst, Asia Pacific, OANDA, said the Indian rupee hit a new all-time low.

“Notably, US yields barely moved overnight, so the yen and the rupee have no excuse on that front,” Haley said. ”

Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, said the rupee has hit 79 levels much earlier than expected as RBI has withdrawn its hands and there are no sellers and no inflows in the dollar market.

“Today evening, we have GDP data. It looks like the rupee is now covering its earlier slow depreciation and soon we may add a new figure of 80 to it. Most of the Asian currencies have depreciated today and Equity is unable to give much relief, more depreciation is on the cards,” Bhansali said.

He added that exporters can now wait with a stop loss of 78.75, while importers can buy and buy more on dips when they realize it.

The dollar index, which tracks the dollar against a basket of six major world currencies, closed 0.10 per cent lower at 104.40.

Data released overnight showed US consumer confidence fell sharply in June after a fall in May, the US Conference Board said overnight, as concerns over high inflation stunned US consumers on fears of weak economic growth. .

Sugandha Sachdeva of Religare Broking said on Tuesday that the market is assessing whether the US Fed will raise rates aggressively as inflation picks up, while there are mounting risks of hard-landing. “Now the focus will be on EU annual summit and OPEC+ meeting which will provide further indications for the Indian rupee. A decisive breach of 78.50 mark will pave the way for further depreciation towards 79.20 mark in the coming days.” Told.

Jigar Trivedi of Anand Rathi Shares feels that the rupee may fall to 80/81 levels by the end of the year as the two losses add to the pressure on the emerging market currency. The Fed is expected to hike rates by 75 bps in the July meeting, while the RBI meeting is not until August, which could narrow the yield gap between India and the US, and put further weight on the rupee, he said. Told.

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