Rupee Ends At Fresh Low Of 79.37; Record Trade Deficit To Drag It To 82/US Dollar

Rupee has been depreciating and seeing new lows. For now the gains in the dollar index and the surprising trade deficit which for June came in at record high is weighing on the rupee. As per a Reuters report, rupee was trading at 79.13 per US dollar by 0822 GMT, after hitting a fresh low of 79.15 per US dollar. On Monday, rupee closed at 78.95 per US dollar.

Also, it ended at a record low of 79.37 per US dollar in trade today.

At the time of writing this copy, rupee is trade soft at 79.3 per US dollar. The day's range being between 78.936-79.381.

As the trade deficit has mounted fresh concerns on wider current account deficit has surfaced. Due to higher crude and coal imports, trade deficit in June has risen to a record $25.63 billion as against just $9.61 billion a year ago.

Now to tame the rupee and curb imports, government has come up with a step recently of increasing the import duty on gold.

Weak equity sentiment together with relentless FPI selling too has been weighing on the domestic rupee.

As per Nomura, the record trade deficit shall prevail and its wake rupee shall continue to see downward trajectory and is forecast to hit 82 against the dollar in Q3 2022.

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