Indian rupee at Rs 79.36 against USD, gold reaches Rs 54K
By siliconindia | Wednesday, 06 July 2022, 09:20:32 AM IST
The Indian rupee on Tuesday hit a low of Rs 79.36 against the US dollar and experts expect further depreciation.
In a research report, Kotak Securities said the dollar will touch Rs 80 in the near term.
Kotak Securities said the widening trade deficit, narrowing of interest rate differentials, and Reserve Bank of India's foreign exchange intervention strategy (sell spot along with buy-sell swaps) leading to a collapse in forward premiums, led to relatively sharp depreciation in the rupee recently.
Citing the uncertainty in the global macro environment, the report said the Indian rupee is likely to be under pressure, especially if crude prices remain elevated and global growth slows down.
On the other hand, the price of 24 carat gold touched Rs 54,000 per 10 grams on Tuesday.
On Monday, the rupee had closed at 78.95 against the US dollar.
The Indian rupee hit a fresh record low against the US Dollar on Tuesday on the back of stronger dollar and weaker-than-expected domestic data, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.
Jateen Trivedi, VP Research Analyst at LKP Securities said "Rupee scaled to fresh new lows below 79.35 falling by more than 0.50% amid strong sell off from higher levels in capital markets indicting FII’s still fearful on any rise in equities. Rupee felt the heat with dollar index sharp surge towards 106$ rising 1% compared to last close. As risk sentiment on inflationary pressures continues globally. Rupee range can be seen between 79.05-79.55."
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