Indian currency drops 51 paise today, Know the reason behind it
Indian currency Rupee has dropped 51 paise to an lowest level of Rs 77.41 against the US dollar on Monday.cour
At interbank foreign exchange, the Indian rupee was opened at 77.17 against the US dollar. After that, it then lost ground to quote at 77.42. Consequently, a direct fall of 52 paise from the last closing. The Indian rupee has dropped past the initial record low of 76.98 in March.
The dollar index, which measures the greenback’s strength was trading 0.35 per cent higher at 104.02. Consequently, tracking the rising US yields and fears about higher interest rates.
Initially, on Friday, the rupee value went down to 55 paise to a closing at 76.90 against the US dollar. The reason behind the drop in Rupee value could be the demand. Consequently, the demand for riskier assets. And also because the foreign investors continue to dump the domestic stocks. Foreign investors were net sellers in the capital market on Friday. They dumped the shares worth Rs 5,517.08 crore, as per stock exchange data.
Moreover, Asian and the emerging market started weak this Monday morning. Investors are also anxious about the Asian stocks. It can also decline further due to the tightening of COVID lockdown in Shanghai, that could hit global economic growth. The inflation may also trigger more aggressive rate hikes by the global central banks.
Rupee plummets 51 paise to all-time low of 77.41 against US dollar in early trade
— Press Trust of India (@PTI_News) May 9, 2022