The rupee hit yet another all-time low on Monday, closing over the psychologically crucial 81 mark as global financial markets continued to reel under the after-effects of the US Fed’s aggressive 75 basis points rate hike, which has substantially strengthened the dollar.
The Indian unit hit three new record lows on Monday — opened at 81.5225 per dollar, touched an intra-day low of 81.6550 and closed at 81.6225. The rupee closed about 63 paise lower vis-a-vis Friday’s life-time closing low of 80.99.
“The rupee is catching up with other currencies when it comes to depreciation vis-a-vis dollar. In the current calendar year so far, the Indian unit has depreciated 9.81 per cent. Though the RBI’s aggressive dollar sales pushed the rupee towards an intra-day high of 81.4450, this level could not be sustained after dollar sales turned mild,” said the chief dealer of a private sector bank.
During the course of the Indian forex market hours, the Dollar Index ruled stronger at around 114 and this weighed on the rupee.
Forex dealers opine that if the rupee breaks the 81.77 mark then it could depreciate to 82.50 per dollar.