The Indian rupee weakened further on Monday, 9 May, to close at a new all-time low of 77.50, weighed down by elevated crude oil prices and a widening trade deficit.
Earlier in the day, the Indian rupee fell past the 77 per dollar mark for the first time in early trade. The rupee touched an all-time low at 77.42 per dollar, down 52 paise from its previous close.
Foreign exchange reserves have plunged by around $45 billion from its all-time high of $642 billion in September 2021. As per the data released by the Reserve Bank of India (RBI) last week, the country’s forex reserves fell to $598 billion for the week ended 29 April, reported Business Standard.
Forex traders said that risk appetite has weakened amidst escalating concerns over inflation and may trigger more rate hikes by the global central banks.
The dollar index, which measures the value of the US dollar against a basket of six foreign currencies, was trading 0.35% higher at 104.02, tracking rising United States yields and fears about higher interest rates, reported PTI.
The Indian rupee has slumped 55 paise and closed at 76.90 against the US dollar on Friday, 6 May.
Rahul Gandhi Reacts
Meanwhile, Congress Leader Rahul Gandhi took to Twitter and took a jibe at Prime Minister Narendra Modi.
"Modi ji, you used to criticise Manmohan ji when rupee fell. Now rupee is at its lowest ever value. But I won't criticise you blindly. A falling rupee is good for exports provided we support exporters with capital and help create jobs. Focus on managing our economy, not media headlines," he said.
(With inputs from PTI and Business Standard.)
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