news details |
|
|
| Rupee slumps and breaches 76-Mark per dollar for first time in 2022 | | |  The Indian rupee slumped past the 76 per dollar mark on Friday to touch its lowest level since mid-December, as the deepening crisis in Ukraine pushed Asian shares toward 16-month lows.
Persistent foreign fund outflows and a weak trend in domestic equities too weighed on the Indian currency, with traders watching for potential central bank intervention.
The rupee slumped 0.3 per cent to 76.16 against the US dollar after touching 76.1750 - its lowest since Dec. 17. The currency had closed at 75.91 on Thursday.
For the week, the currency has weakened over 1 per cent, marking a second straight week of losses.
"Recent market environment continues to favour a stronger dollar against rupee as there are high chances of the government missing fiscal target following a surge in crude oil prices and delay in diversification. Higher commodity prices could turn into imported inflation, and the central bank will be forced to change stance in coming months," HDFC Securities' Research Analyst Dilip Parmar told PTI.
Most emerging Asian currencies and stocks weakened on Friday amid heightened investor anxiety after reports that Russian forces had attacked a nuclear plant in Ukraine.
Meanwhile, the US dollar index, which measures the greenback's strength against the basket of six currencies, fell 0.27 per cent to 98.05.
Brent crude futures, the global oil benchmark, fell 0.80 per cent to $111.34 per barrel. International crude oil prices shot to nearly $120 a barrel for the first time in nine years on Thursday before retreating a little to $111 on Friday.
Still, the energy-sensitive rupee traded between a high of 75.99 and a low of 76.22 during the session.
"Markets are going to be volatile until the war concludes. With oil still holding up, expectations of higher inflation have climbed. The rupee is likely to move in tandem with Asian peers unless the RBI intervenes," a senior forex trader at a private bank told Reuters.
The Russia-Ukraine crisis has remained the most crucial issue for investors this week as they assess its global economic impact. Russia is one of the essential oil producers, and prices have been rising as global supplies remain threatened by the conflict.
India imports more than two-thirds of its oil needs, and the surge in crude threatens to push up the country's trade and current account deficit and pressure the rupee.
Traders also said the RBI had been selling dollars through state-run banks to shore up the rupee.
On Friday, the Indian bourses tracked global equities and extended their fall for the third straight session.
Investors' wealth tumbled more than ? 5.59 lakh crore in three days of market fall as sentiments remained muted amid the Russia-Ukraine conflict and its impact on the global economy. |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
|
 |
|
|
