New Delhi: On Wednesday, The rupee for the first time declined under the 79-mark against the US dollar. The Indian currency depreciated by 18 paise during the day’s trading session to close at 79.03. At the interbank foreign exchange market, the rupee opened lower at 78.86 against the greenback and finally settled at 79.03, down 18 paise over its previous close.
During the session, the rupee touched an all-time low of 79.05 against the American currency.On Tuesday, the rupee plunged by 48 paise to close at the record low of 78.85 against the US dollar.
The domestic unit has lost 1.97 per cent so far this month and has eroded a staggering 6.39 per cent since the start of this year.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13 per cent higher at 104.64.The rupee depreciated following risk-averse sentiments and weaker regional currencies, Dilip Parmar, Research Analyst, HDFC Securities said, adding “high demand and tighter dollar liquidity following quarter-end rebalancing weighed on a local unit(rupee)”.
The rupee has hit a series of lifetime lows this month since breaching the 78-to-a-dollar rate as concerns around growth, portfolio outflows, high global crude prices, and sustained inflation have weighed on the currency. “The short-term outlook for spot USD/INR remains bullish and one can see a level of 79.10 in the coming days, while on the lower side support has been shifted to 78.38,” he said.