HomeLatest NewsThe rupee fell below the 81-mark against the US dollar for the...

The rupee fell below the 81-mark against the US dollar for the first time in early trade market news

MUMBAI: The rupee depreciated by 44 paise and fell below the 81-mark against the US dollar for the first time on Friday, weighed by the stronger American currency and risk-off sentiment among investors.

Forex traders said rising geopolitical risks in Ukraine and rate hikes by the US Fed and the Bank of England to control inflation have dampened risk appetite.

Moreover, the risk-off mood weighed on the local unit amid the strength of the American currency in foreign markets, a negative trend in domestic equities and increasing geopolitical risks in Ukraine.

In inter-bank forex, the rupee opened at 81.08 against the greenback, then eased further to 81.23, registering a decline of 44 paise from its previous close.

On Thursday, the rupee fell 83 paise – its biggest one-day loss in nearly seven months – to close at an all-time low of 80.79 against the US dollar.

The Bank of England raised its base rate by 50 basis points (bps) to a 14-year high of 2.25 percent.

The Swiss National Bank raised rates by a record 75 bps to 0.5, the IFA Global Research Academy said, intervening in FX markets for the first time in 24 years to stem the yen’s fall. percent.

The US Fed raised interest rates by 75 basis points to 3-3.25 percent.

The RBI was conspicuous by its absence from the spot market on Thursday as the rupee fell 1 percent as it sought to catch up with the rupee, said Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors.

“All major events are over for this month as we await RBI’s MPC verdict on September 30, 2022,” Bhonsali added.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, advanced 0.05 percent to 111.41.

Global oil benchmark Brent crude futures were down 0.57 percent at USD 89.94 a barrel.

On the domestic equity market front, the 30-share BSE Sensex was trading down 558.59 points, or 0.94 percent, at 58,561.13, while the broader NSE Nifty was down 153.10 points, or 0.87 percent, at 17,476.70.

Foreign institutional investors were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 2,509.55 crore, according to exchange data.

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