Rupee falls 40 paise to record low of 81.93 against US dollar

Rupee falls: The rupee depreciated 40 paise to a record low of 81.93 against the US dollar in early trading on Wednesday, as a strengthening US currency and risk-off sentiment among investors weighed on the local unit.

Rupee falls 40 paise to record low of 81.93 against US dollar

In addition, a negative trend in domestic stocks and large outflows of foreign funds sapped investor appetite, currency traders said.

In the interbank exchange rate, the rupee opened at 81.90 against the dollar, then fell to 81.93, posting a drop of 40 paise from its previous close.

On Tuesday, the rupee consolidated in a tight range and closed 14 paise higher at 81.53 against the dollar.

The rupee opened weaker on Wednesday as the dollar resumed its bullish momentum supported by the Fed’s hawkish statements, said Sriram Iyer, senior research analyst at Reliance Securities.

The local unit could track weakness in Asian and emerging-market pairs, Iyer said, adding that a delay in including local bonds to list in a major global index this year could also cap gains.

“The Reserve Bank of India (RBI) may be around to curb volatility,” Iyer noted.

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