Rupee falls to record low against US dollar, slips past 82-mark

Traders are also monitoring the United States' payrolls report which is expected today, as it could influence the Fed's stance on monetary policy



Photo: Reuters
Photo: Reuters

By ANI

Published: Fri 7 Oct 2022, 8:31 AM

Last updated: Fri 7 Oct 2022, 9:38 AM

With increasing oil prices weighing on traders' sentiments, the rupee plunged to an all-time time low of 82.22 against the US dollar in morning trade on Friday.

Traders are also monitoring the US payrolls report which is expected today.

Depending on this, the US Federal Reserve's stance on monetary policy could also be influenced. The rupee had closed at 81.88 in the previous session.

Government bond yields are expected to open higher on Monday, as concerns over debt supplies may resurface after a weaker-than-expected demand at a debt auction on Friday. Bond prices and yields are inversely related.

The dollar index, which tracks the greenback versus a basket of six major peers, was minorly affected at 112.032, following a rally from a two-week low.

Oil prices rose on the back of a "deep" supply cut by the Organization of Petroleum Exporting Countries (Opec) and its allies, and are set for more volatility. Crude prices are headed for the biggest weekly gain since the beginning of the Russia-Ukraine conflict this year.

A weak rupee has driven dollar selling by the Reserve Bank of India (RBI) to support the currency. However, this has raised concerns over India's dwindling foreign exchange reserves.

Last week, RBI also raised its repo rate in order to rein in the depreciation of the local currency against the dollar.

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