No Respite For Bleeding Rupee, Well Past 79 Per Dollar And Near Record Lows

There is no respite for the battered rupee, with the currency closing on Wednesday not far from its all-time low.

No Respite For Bleeding Rupee, Well Past 79 Per Dollar And Near Record Lows

Rupee falls to another all-time weak level

There is no respite for the battered rupee, with the currency ending at around 79.30 per dollar on Wednesday, not very far from its all-time weak close in the previous session, driven by risk-off sentiment on global recession fears from inflation-fighting central banks.

Markets also await clues from the US Federal Reserve meeting minutes set to be released on Wednesday.

PTI reported the rupee gained 3 paise to close at 79.30, provisionally, against the US dollar. 

Bloomberg quoted the rupee at about 79.30 a dollar after ending at a new lifetime weak level of 79.37 in the previous session.

The dollar index, a measure of the greenback's performance against its peers, was trading at 106.57, just off its overnight 20-year peak on demand for haven assets.

The backdrop to the rising recession fears is sharply rising interest rates globally.

What has not helped the domestic currency is the rise in global energy prices from tight supply sentiment driven by the Russia-Ukraine war and the resultant sanctions on Moscow, including a ban on its oil.

Crude oil prices rose back above $100 per barrel on tight supply concerns, offsetting the sharp losses previously on expected fall in demand from rising recession risks.
 

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