The rupee on Monday once again set a new record for reaching the lowest level against the dollar. The dollar index remained firm on indications that the US Federal Reserve will hike interest rates further. Due to this, most of the currencies around the world, including the Indian currency rupee, have remained in a declining trend.
In the Inter Bank Foreign Exchange market, the rupee started trading today with a weakness of 21 paise against the dollar at a record low of Rs 80.08. Earlier last month, the rupee had fallen to the level of 80.065 against the dollar. Today the opening of the rupee took place with a new record low. In early trade, the rupee depreciated to 80.12 against the dollar due to global pressure and fears of foreign investors selling in the Indian stock market. Earlier, on the last day of the last trading week, the rupee had closed at 79.87 against the dollar on Friday.
Significantly, this year the US dollar has strengthened by 7 percent against the Indian currency rupee. Due to the coming strength in the dollar index, most of the currencies around the world, including the rupee, have weakened. The effect of the strengthening of the dollar is clearly visible on the equity markets around the world as well. At present, American investors are under selling pressure in most of the stock markets.
It is noteworthy that US Federal Reserve Chief Jerome Powell made it clear last week that until the inflation rate in the US does not reach the tolerance limit of 2 percent, the Federal Reserve will continue to hike interest rates. At present, the inflation rate in the US remains close to its record high level of 9 percent. According to experts, due to this stance of Jerome Powell, while on the one hand there has been an environment of weakness in the stock markets around the world, on the other hand it has strengthened the dollar index. Its effect is clearly visible on the Indian stock market as well as the Indian currency market today.