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Rupee ends at its weakest, record low close

June 29, 2022

Rupee ends at its weakest, record low close
The rupee plunged to close at 78.85 per dollar on Tuesday, its weakest ever, and marks the fifth straight session of record low closes.

Surging oil costs fueled concerns about long-term inflation and pushed the rupee to a new record intraday low and lifetime weak close against the dollar, following weak equities tracking Wall Street’s poor performance overnight and the recovery in oil prices after last week’s collapse.

PTI reported that the currency fell 48 paise to close, provisionally, at a new record low of 78.85, while Bloomberg quoted the rupee at 78.7863 per dollar.

The rupee depreciated against the dollar at the interbank foreign currency market, starting at 78.53 per dollar and ending at 78.83, down 46 paise from Monday’s 78.34 close.

Bloomberg quoted the rupee’s intra-day weak at 78.8675, while PTI reported that currency fell as low as 78.8550 against the dollar, during the session today.

But traders said the Indian central bank’s dollar sales helped keep losses in check.

India imports more than two-thirds of its oil requirements. Increased import inflation damages the rupee while worsening the country’s trade and current account deficits (CAD).

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