
Rupee Hits Its Lowest Level: The rupee fell by 55 paise during trading on Monday to reach an all-time low of 86.59 against the US dollar.
Mumbai:
Rupee Hits Its Lowest Level: Amidst the strong trend of the American currency and the rise in crude oil prices, the rupee fell by 55 paise during trading on Monday to reach an all-time low of 86.59 against the US dollar. This is the biggest fall in the local currency in almost two years. The Indian currency has fallen by more than one rupee in the last two weeks from the closing level of 85.52 per dollar on December 30.
The rupee opened at 86.12 in the interbank foreign exchange market. During trading, it reached an all-time low of 86.59 against the dollar, which is a decline of 55 paise from the previous closing price. However, within a short time the local currency made some comeback and was trading at 86.50 against the dollar with a fall of 46 paise.
The rupee fell 18 paise to close at 86.04 against the US dollar on Friday.
Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, stood at 109.60, up 0.11 per cent. The yield on America’s 10-year bond increased to the level of 4.78 percent in October 2023. International standard Brent crude stood at $ 80.92 per barrel with a gain of 1.42 percent.
Air India also affected
According to stock market data, foreign institutional investors (FIIs) were sellers on Friday and sold shares worth a net Rs 2,254.68 crore. The fall of the rupee against the US dollar also puts pressure on the cost structure and profitability of the airline Air India. However, the airline has some natural defense as it can charge higher fares for international flights where tickets are priced in foreign currencies, a senior company official said. The Indian rupee has been falling in recent weeks and reached a record low of 86.04 against the US dollar on January 10. Operating expenses of airline companies increase due to weak rupee, as most of their costs are in dollars.
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