Rupee hits a new record low, falls past 83 per dollar for the first time

Early on Thursday, the dollar strengthened against the rupee, breaking the historic level of 83 for the first time. The rupee fell to a fresh record low of 83.06 as a result. The rupee has lost more than 8–9% of its value since the beginning of this year.

Due to persistent outflows of foreign funds and a stronger US currency abroad, the rupee dropped 6 paise to a record low of 83.06 against the US dollar in early trade on Thursday. According to FX dealers, the local currency also suffered from a sell-off in domestic markets and risk-averse behaviours.

The local unit at the interbank foreign exchange depreciated further to quote 83.06, a loss of 6 paise from its previous level, after beginning weakly against the dollar at 83.05.

The local currency peaked in early transactions at 83.07. On Wednesday, the rupee lost 60 paise to end the prior session at 83 against the dollar. The rupee lost 10 paise to conclude the previous session on Tuesday at 82.40 against the dollar.

The rupee has lost more than 8–9% of its value since the beginning of this year. In 2022, there have already been a lot of record lows. The war between Russia and Ukraine exacerbated the rupee’s depreciation by driving up global prices, causing economic instability, and encouraging capital flight from India.

The dollar index, which gauges the value of one currency against a basket of six others, rose 0.7% to 113.06. Brent crude futures, the international standard for crude oil, decreased 0.17 percent to USD 92.25 a barrel.

On the domestic equity market, the 30-share BSE Sensex was down 140.09 points, or 0.24 percent, at 58,967.10. Additionally down by 43.95 points, or 0.25 percent, to 17,468.30, was the bigger NSE Nifty. Exchange figures show that Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday after selling shares worth Rs 453.91 crore.