Rupee Breaches 78 per US Dollar for First Time, Hits New Lifetime Low Today; 5 Points

On Thursday, the rupee fell 6 pounds to close at 77.74 against the US dollar.

On Thursday, the rupee fell 6 pounds to close at 77.74 against the US dollar.

The local currency crossed 78 marks against the US dollar for the first time on June 13

  • Last updated:June 13, 2022 at 09:59 IST
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The Indian rupee fell to an all-time low on Monday as it crossed the 78 level against the US dollar for the first time. The local currency started 30 baisa lower at 78.14 per US dollar on Monday versus a close of 77.84 on Friday. Rising global crude oil prices, a strengthening dollar, and a steady influx of foreign money from the local market have kept the local currency under pressure over the past few sessions. The rupee lost 21 pounds against the dollar last week.

Analysts have pointed to several factors behind the rupee’s drop to its lifelong low.

1) The US Consumer Price Index jumped 8.6 percent in May. This was the largest rise in US inflation history since December 1981. The higher inflation numbers drove US 10-year yields. The benchmark 10-year US yield touched 3.2 percent on Monday, after gaining nearly 12 basis points on Friday after US inflation beat expectations.

2) The dollar index posted solid gains last week, on the back of hot inflation data and a strong 10-year US yield. The dollar crossed the 104 mark again and closed at 104.235, an increase of 0.99 percent on Friday. US Dollar-INR June 28 futures also settled at a positive level at 77.97 with a gain of 0.13 percent. The rise in the dollar index sent the local currency lower on Monday.

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