Rupee Hits Fresh Low Of 78.29/ US Dollar; Analysts See It To Weaken Further

The domestic currency in trade today (June 22, 2022) fell to fresh low of 78.29 against the greenback. As against the previous close of 78.09, the rupee opened weak at 78.13 and last at around the time of writing this copy at around 2:25 pm traded with a change of 0.15 or 0.1921% at 78.24 per US dollar.

Rupee Hits Fresh Low Of 78.29/ US Dollar; Analysts See It To Weaken Further

The rupee has been bearing the brunt on account of continued FII selling, risk-off sentiment in global equities and higher crude oil prices. The sell-off in both emerging market equities as well as currencies has heightened ahead of the US Fed Chair Jerome Powell's testimony to the US Congress scheduled for later in day.

The dollar index has been trading unusually higher near two-decade high of 104.507 as investors remained cautious on account of globally surging interest rates and inflation.

"The dollar index and the U.S. bond yields are getting support from the U.S. Fed's aggressive rate hike plans. We expect the dollar index could show further strength and could test the 105 mark again in upcoming sessions," Rahul Kalantri, VP Commodities, Mehta Equities Ltd is quoted as saying in a leading dailies.

Further as per experts from the forex space, the rupee has also been suffering due to the heightened concerns regarding the country's inflation scenario as well as current account deficit and increased crude oil price.

"On the other hand, the rupee showed weakness despite recovery in the domestic equity markets. The aggressive interest rate hike plans of the U.S. Federal Reserve and continuous sell-off by the FIIs are exhibiting pressure on the rupee. Widening trade deficits and high crude oil prices are also restricting gains of the rupee. We expect the rupee to remain volatile this week and could test its resistance level of 78.45," he added.