Indian Rupee slips to record low amid rising crude oil prices

The Indian Rupee opened at Rs 77.74 against the US dollar, then lost ground to Rs 77.78, registering a fall of 10 paise from the last close.

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Mumbai: Amid a constant rise in the global crude oil prices, the Indian rupee slipped 10 paise to hit a record low of Rs 77.78 against the US dollar. Last time the rupee hit this low was on May 17.

According to reports, at the interbank foreign exchange, the rupee opened at Rs 77.74 against the US dollar, then lost ground to Rs 77.78, registering a fall of 10 paise from the last close.

On Wednesday, the rupee recovered from its record low to close 10 paise higher at 77.68 against the American currency. Rupee opened on a bearish note as crude oil neared $125 per barrel, Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors was quoted by PTI.

“Only RBI is supporting the rupee while the flows have totally dried out. Foreign Portfolio Investors (FPIs) continue the sell-mode for equities and buy-mode for US dollar,” Bhansali said.

Moreover, Asian currencies are trading on a weak note, Bhansali said, adding that there is “no effect of a rate hike by RBI on Wednesday on the rupee as buyers of the dollar are in abundance.”

Global oil benchmark Brent crude futures rose 0.26 per cent to $123.90 per barrel. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01 per cent lower at 102.52.

On the domestic equity market front, the 30-share Sensex was trading 163.34 points or 0.30 per cent lower at 54,729.15, while the broader NSE Nifty declined 41.00 points or 0.25 per cent to 16,315.25.

Foreign institutional investors were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 2,484.25 crore, as per stock exchange data.

(With agency inputs)

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