The rupee in trade on June 28, 2022 (Tuesday) has plunged to a fresh low of 78.78 per US dollar. At the open, the currency nosedived to a fresh low of 78.51 as against the previous day's close of 78.36 and continued to extend its losses. Last at the time of writing this copy at around 12:00 pm (IST), rupee has been trading weak at 78.715, with a change of 0.453%.
As per traders in the market, losses in the local currency are triggered on the back of rise in global crude prices as well as weak equities that led investors to sell the currency. Additionally they added that sharp fall in the currency during the session is unlikely.
Oil prices rose today in early trade in Asia on the back of tight supplies. Nevertheless leaders of the G7 nations pledged to pressurise Russia while at the same time reducing energy prices. At the time of writing this copy at around 1pm, both brent and WTI crude trading with gains close to 2%. Brent was at $117.2 per bbl, while WTI traded at $111.5 per bbl.
Traders are of the view that rupee shall remain supported by the RBI's dollar sales, so any sharp fall in the domestic unit shall be checked for.
"Indian rupee opened at new life low as risk- sentiments retreat while crude oil prices gained on supply worries. Today is the last day of quarterly adjustment and as we all know RBI has aggressively intervened in forward and futures market, there is a high chance of the rupee depreciating in the first half while stabilising in the second half. Spot USDINR is having resistance at 78.80 and support at 78.40. The view for USDINR remains bullish till it sustains above 77.87, the low of June 20," said Dilip Parmar, Research Analyst, HDFC Securities.