Rupee At Record Low: At the close of the currency market, the rupee has closed at Rs 83.02 for the first time with a fall of 66 paise i.e. 0.8 percent.
New Delhi: On Wednesday, once again in the currency market, there has been a historical fall in the rupee. For the first time, the rupee has fallen below the level of Rs 83 against a dollar. At the close of the currency market, the rupee closed at Rs 83.02, down by 66 paise, or 0.8 per cent.
Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors, said, “Possibly RBI was buying dollars in currency futures yesterday, indicating things to come. This was the only time the 82.40 breach would have happened. So There seems to be no level for the rupee and hence the next target after breaking the 83.00 barrier is 83.50.”
The domestic currency fell to its weakest level of 82.9450 when risk-averse assets reversed recent gains and the rupee fell. The data showed skyrocketing food prices pushed British inflation back to a 40-year high of 10.1 percent. Which is putting pressure on the Bank of England to increase rates aggressively.
By the way, due to the intervention of RBI, there has been a decline in the foreign exchange reserves of India. A year ago, there was a foreign exchange reserve of $ 642 billion, which has come down to around $ 538 billion. That is, there has been a decrease of 100 billion dollars in the foreign exchange fund. Many experts believe that India’s foreign exchange reserves can come down to $ 500 billion.
However, if the rupee continues to weaken against the dollar, imports can become expensive, due to which the current account deficit may increase. In the first quarter of the current fiscal year 2022-23, from April to June, the current account deficit has increased to $23.9 billion, which is 2.8 percent of GDP.