Rupee Crosses the 82 mark .. hits lower against the US dollar! See the Rupee depreciation impact…

Rupee vs US dollar –

The rupee levels down past 82 to fall to a fresh record low of 82.33 per US dollar. The domestic currency was down 44 paise down against the US dollar. The Indian rupee has been dated around 10.6% so far this calendar year amid a flight to safety towards the American currency amid macroeconomic worries and Fed’s rate hikes. Forex dealers said the rupee fell to a fresh all-time low on Friday as the dollar remained strong and also a rally in global crude oil prices weighed on the overall market sentiment.

Rupee depreciation impact –

India is a major importer, with oil being its main import. As Rupee depreciates, our cost of imports goes up, which in turn increases the external deficit as well as the fiscal deficit. A weaker Rupee raises the cost of all imports, thereby increasing the price of goods and putting upward pressure on domestic inflation. There is a huge reduction in the oil production which will increase prices of crude oil further which raise the concerns over inflation and rate hikes,” said Gaurang Somaiya, forex, and bullion analyst, Motilal Oswal Financial Services Ltd.

What lies ahead –

The rupee is expected to trade in a range of 81.80 to 82.80 against the US dollar in the short term, said Anindya Banerjee, vice president – currency derivatives and interest rate derivatives, Kotak Securities Ltd. Meanwhile, according to AP, US employers slowed their hiring in September but still added 263,000 jobs, a solid figure that will likely keep the Federal Reserve on pace to keep raising interest rates aggressively to fight persistently high inflation. Friday’s government report showed that hiring fell from 315,000 in August to the weakest monthly gain since April 2021. The unemployment rate dropped from 3.7 percent to 3.5 percent, matching a half-century low. US stocks dropped sharply in early trading Friday after data showed the economy was creating jobs at a strong pace. The Dow Jones Industrial Average was down 1.69%, the S&P 500 lost 2.17% and the Nasdaq Composite declined 2.79%, as per a Reuters report. Meanwhile, oil rose about 3% to a five-week high on Friday. Brent futures rose $2.73, or 2.9 percent, to $97.15 a barrel by 10:56 a.m. EDT (1456 GMT). US West Texas Intermediate (WTI) crude rose $2.94, or 3.3 per cent, to $91.39.

To Join Our Telegram and WhatsApp Group for the latest Finance related News… Click here to get all the latest and important news..