Rupee Reaches all-time Low of 77.42 per Dollar

The Indian rupee topped 77 per dollar for the first time in the midst of soaring crude oil prices and widening trade deficits. The rupee was trading at 77.32 per dollar, 41 paise down from its previous close. The stances of the US Federal Reserve have resulted in hardening the US bond yields with the dollar index strengthened to 20 years high.

The RBI has been active in intervening in the foreign exchange market and has been confirmed to have protected Rs 77 per dollar in the past. Forex traders said their risk motivation has eased amid rising inflationary concerns that could encourage more aggressive rate hikes by the global central banks.

The dollar index, which measures the strength of the greenback against a basket of six currencies, rose 0.35% to 104.02, reflecting concerns about rising US yields and rising interest rates.

Brent crude futures, the global oil benchmark, rose 0.14% to $ 112.55 per barrel. According to stock market data, foreign institutional investors were net selling on capital markets, selling stocks of Rs 5,517.08 crore, according to the stock exchange data.