Rupee Slumps To 78 Levels Per US Dollar; Fresh Record Low For The Domestic Unit

On Monday on global headwinds, rupee slumped and breached 78 mark for the first time, hitting a record low against the greenback. The US CPI number released on Friday came in higher than analysts estimate at a 40-year high now signalling a more hawkish Fed, with a even sharper rate hike as against earlier called for by the US Federal Reserve.

The sentiment has even worsened on account of the global sell-off in equities and as the crude oil continues to hover around the $120 per barrel mark.

In the forex market today, the domestic unit opened at 78.12 against the previous close of 77.85 per US dollar and at the time of writing this copy at around 10:33 am traded at 78.24, down by 0.39 or 0.501%.

So far in the CY 2022, FIIs have net sold $23.87 billion from domestic equities and higher crude prices also signals pressure on imported inflation as India meets most of its crude requirements through imports.

"The USD/INR had been trading in narrow ranges for the last three weeks and had been gradually grinding higher over the last 3-4 sessions. The RBI has been intervening to prevent runaway depreciation of the rupee and to contain volatility," said IFA Global in a note to investors.
Also, the country's CPI data is due to be released today that shall be on traders radar.