Rupee vs Dollar: The Indian rupee slipped to a new record low on Monday, driven by heavy hedging from importers and a rise in short positions amid higher U.S. tariffs.
Rupee weakened to 88.33 against the U.S. dollar, surpassing Friday’s previous record low of 88.3075. Analysts noted that this decline continued the pressure observed late last week.
Forex traders said that the rupee started off on a weaker footing this morning and is likely to stay under pressure as US tariffs and FPI outflows weighed on the domestic currency.
At the interbank foreign exchange market, the rupee opened at 88.18 and slipped further to an early low of 88.26 against the US dollar, marking a drop of 17 paise from its previous close.
On Friday, the rupee fell past the 88 per US dollar level for the first time, closing at a record low of 88.09 against the greenback.
The rupee slipped to a record intraday low of 88.31 last Friday after the RBI permitted it to breach the 87.80 mark, which it had been defending for the past six months, as well as its previous record low of 87.95, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, was quoted as saying by PTI.
Rupee vs Dollar: Indian currency likely to depreciate further?
According to Anuj Gupta, Director, Ya Wealth Research & Advisory, the Indian currency may further depreciate as Indian exports may hit particular textile, pharma & gens & jewellery sector.
“The Rupee could test the 89–90 range if the situation persists, but the RBI is expected to intervene by selling dollars. Some relief may also come from the US court on the tariff front, which could help stabilize the rupee,” Gupta said.
Government data released on Friday revealed that India’s economy expanded by a better-than-expected 7.8 per cent in April–June, marking its fastest growth in five quarters.
At the same time, the dollar index — which measures the US dollar’s performance against a basket of six major currencies — slipped 0.07 per cent to 97.70.
Meanwhile, Brent crude, the global benchmark for oil, was down 0.41 per cent at USD 67.20 per barrel in futures trading. Foreign Institutional Investors (FIIs) sold equities worth ₹8,312.66 crore on Friday, as per exchange data.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
