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The Indian rupee fell below 83 versus the US dollar for the first time on Wednesday, as surging US treasury yields forced a rally in the greenback.
As per report by ANI , the rupee plunged 61 points to dip below for the first time and closed at a record low of 83.01 against the dollar.
Rising crude prices in the international markets and risk-averse sentiment among investors weighed on the local currency, traders said. The Bank of England’s expected interest rate rise next month, following the latest inflation figures, will act as a robust reminder for investors.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.31 per cent to 112.48.
In the previous session on Tuesday, the rupee slipped 10 paise to end at 82.40 against the dollar.
Global oil benchmark Brent crude futures rose 0.82 per cent to USD 90.77 per barrel.
On the domestic equity market front, the 30-share BSE Sensex gained 146.59 points or 0.25 per cent to end at 59,107.19, while the broader NSE Nifty advanced 25.30 points or 0.14 per cent to 17,512.25.
Speaking to reporters after attending the annual meetings of the International Monetary Fund (IMF) and the World Bank, Union Finance Minister Nirmala Sitharaman had reportedly as per PTI report, said that the fundamentals of the Indian economy were strong and that inflation was low compared to other parts of the world.
“First of all I would look at it as not rupee sliding, I would look at it as dollar strengthening, dollar strengthening incessantly,” she said in reply to a question on the weakening rupee.
All other currencies around the world are performing against a strengthening dollar, she said.
Senior Congress leader and former Finance Minister P Chidambaram tweeted ,
Indian Rupee is not weakening, but the Dollar is strengthening, said the Hon’ble FM
In aid of the weakening-strengthening argument, the government has burned USD 100 billion in the last year
I suppose it is a small price to pay to keep the smile on the Hon’ble FM’s face
— P. Chidambaram (@PChidambaram_IN) October 19, 2022
