Rupee weakens to all-time low against the US dollar on Monday
Indian rupee weakened to an all-time low against the US dollar on Monday as the American currency strengthened to new 20-year high with prospects of aggressive interest rate hikes ahead by the US Federal Reserve to bring down inflation. Investors also focused Reserve Bank of India’s meeting this week, with its decision due on Friday with expectations of rate hikes by 50 basis points to cool stubbornly high inflation. Moreover, ongoing war between Russia and Ukraine, weak trend in domestic equities and significant foreign fund outflows also dampened rupee sentiments. Foreign Institutional Investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 2,899.68 crore on Friday, exchange data showed. Meanwhile, the country's forex reserves declined $5.219 billion to $545.652 billion for the week ended September 16.
The partially convertible currency is currently trading at 81.57, weaker by 48 paise from its previous close of 81.09 on Friday. The currency touched a high and low of 81.58 and 81.45 respectively.
