First time ever, the rupee falls 44 paise and slipped 81 mark against the US dollar on Friday.
As per Forex traders, the reason for the sudden dip can be stated to be the ongoing geopolitical risk in Ukraine, followed by the rate hikes by the US Fed and Bank of England in a bid to contain inflation sapped risk appetite.
Rupee falls 44 paise and slips 81 mark against US dollar
The sudden strength of the US currency in the overseas market, has impacted the domestic equities thus risking off moods amid escalation of geopolitical risk in Ukraine weighed on the local unit.
In terms of the interbank foreign exchange, the Indian rupee opened at 81.09 against the greenback, then it fell to 81.23 further registering a fall of 44 paise over its previous closing.
On Thursday, the Indian rupee falls 44 paise – its single biggest loss in seven months – to close at 80.79 against the US dollar.
Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors said, “All major events are over for this month as we await RBI‘s MPC to give its verdict on September 30, 2022.”