Wednesday, 10 August, 2022

Indian rupee hits record low of 78.78 against dollar

The rupee fell 41 paise to hit its intra-day record low of 78.78 against the US dollar on Tuesday, weighed down by persistent foreign capital outflows.

At the interbank foreign exchange, the rupee opened at 78.53 against the American dollar, then fell further and touched its intra-day record low of 78.78, registering a fall of 41 paise from the last close, report agencies.

On Monday, the rupee declined by 4 paise to close at its life-time low of 78.37 against the US dollar. "We believe India's external position remains relatively healthy, but with portfolio outflows expected to continue amid weakening global equity performance, and further deterioration in BoP in coming months, the risks of INR underperformance cannot be discounted," Emkay Global Financial services said in a research note.

Historically, weaker rupee has moved in sync with the BoP (balance of payments) deficit, the note said.