Rupee Ends At A Fresh All-Time Low Against US Dollar

The Indian Rupee has slipped to a fresh all-time low as the currency fell 14 paise to end at 77.75 (provisional) against the US Dollar, according to news agency PTI. Earlier, the currency dipped to an all-time low of 77.61 against the US Dollar on May 18.

According to analysts, the decline in Rupee is caused by soaring crude oil price and rate hike by US Federal Reserve to control the soaring inflation.

Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services said, "Rupee consolidated in a narrow range despite sharp sell-off in domestic and global equities. Dollar too retraced from higher levels after economic number released from the US came below estimates. Housing numbers released from the US yesterday came in below estimates. On the other hand, Japanese Yen rose following safe haven buying as uncertainty on back rising inflation increased. Today focus will be on Philly Fed manufacturing index to gauge for the dollar. We expect the USDINR to trade with positive bias and quote in the range of 77.20 and 78.05."

According to a report in NDTV, Rupee's sharp dip is caused by capital outflows from emerging markets as Russia launched a war in Ukraine and the subsequent sanctions pushed by Westerns countries that led to disruption in supply chains. It also caused a rise in the prices of commodity and inflation.